Bitcoin Price Prediction from Vanguard Group Joe Davis: Bitcoin can head to zero levels

The volatility in Bitcoin is pretty significant. However, according to a senior economist at the Vanguard group, Bitcoin can even have 0. The senior economist manages billions of dollars. The amount of money which is managed by the Vanguard group is around $ 5 trillion. That is why such a statement coming from a senior economist of such a large group does warrant some attention. In many of the cases, people have invested in Bitcoins at a much higher level. That is why they are currently in losses.

According to Joe Davis, Bitcoin is actually not the right investment choice. It cannot be considered as a currency either. Also, it is a threat to many different institutions as well. He further stated that there is a decent chance that Bitcoin can actually go down to 0.

According to him, the Vanguard group does not consider Bitcoin as a currency. Neither does he consider any other cryptocurrency to be an actual currency. It is just a medium of exchange. Moreover, due to the excessive volatility, it does not warrant any kind of investment as well. This is the reason why he does not advise investing in Bitcoin or any other cryptocurrency to any of his clients.

According to him, Bitcoin, as well as any other cryptocurrency, cannot generate any kind of cash flow. That is why there is no inherent value in them. Moreover, when you add Bitcoin to your portfolio, you will be reducing some other asset which is actually asset rather than just a volatile medium of exchange. That is why he does not recommend investing in Bitcoin to anyone.

Also, he believes that the central banks will not let Bitcoin stay. This is another reason why the value of Bitcoin can fall to 0. He, however, agrees with the experts that the value in the blockchain technology is immense. The blockchain technology can be used for a wide variety of applications but the same cannot be said about Bitcoin. Moreover, nothing is stopping the central banks from launching their own digital currency. As a result, the central banks will indeed take this step in order to secure their currency. As a result, the value of Bitcoin will fall drastically. This is one of the main reasons why he believes that investing in Bitcoin might not be the right move for the investors currently.

He is also clear that the usage of the blockchain cannot be proportional to the price of the cryptocurrency. Blockchain can be used without inflating the price of the cryptocurrency or without buying the cryptocurrency. This is a clear indication that because of the blockchain, the cryptocurrency will not increase in valuation.

Disclaimer: The information on this site is provided for discussion purposes only, and should not be misconstrued as investment advice. Under no circumstances does this information represent a recommendation to buy or sell securities.