The founder and chairman of Equity Group Investments Sam Zell says he is sceptical of bitcoin but concedes that it may be part of the solution. In particular, the billionaire and real estate magnate thinks the bitcoin community is composed of many individuals that he is not fond of.
Fast Talking Characters
In remarks made during an interview, the billionaire, who predicts that the U.S. dollar will lose its status as the world’s reserve currency within the decade, has no kind words for some unnamed individuals in the bitcoin space. A report quotes Zell remarking:
I am very sceptical, frankly, of bitcoin. Ultimately, it may be the answer or one of the answers. But right now, it’s a world that’s extraordinarily populated by chameleons and other fast-talking characters. I don’t believe everybody involved in it are the kind of people I’d like to follow.
Although the billionaire does not explain how BTC can be one of the answers, the same interview, however, does provide some hints as to why Zell thinks so. When talking about the possibility of the U.S. dollar losing its reserve status, Zell warns:
“If we keep doing what we are doing right now, I think it is 10 or 15 years away. If we lose the reserve status, I could see a 25% reduction in our standard of living.”
US Dollar Reserve Currency Status
Meanwhile, other individuals and organizations including the International Monetary Fund (IMF) seem to share the billionaire’s sentiments on the U.S. dollar’s future status. The IMF says central banks now need to think about the possibility of replacing the dollar with other alternatives which include digital currencies.
However, for his part, Zell warns of the disastrous consequences ahead if the tradition of “unlimited debt and irresponsible activity” does not end. Many analysts including bitcoiners see the excessive borrowing and printing of money as the prime cause of the U.S. dollar’s depreciation. The resulting diminished dollar value then forces some investors to seek and invest in inflation resistant assets like fiat money. Bitcoin is proving to be one such asset.
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