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Steve Eisman On Bitcoin And Cryptocurrencies

Steve Eisman, Neuberger Berman portfolio manager, speaks with CNBC’s “Squawk Box” about bitcoin and blockchain, and whether he’d short digital currencies.

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Steve Eisman On Bitcoin And Cryptocurrencies

Transcript

I'm not an expert. I'm her from from everybody. OK. I am not an expert crypto currency but I have my doubts about it and my doubts center around the fact that what's the social utility of crypto currency. I'm not talking a block chain block and the technology I think has real value. But currency markets are the most liquid most efficient markets probably of any markets that exist. But there are markets where they aren't liquid and they aren't efficient. Emerging markets for instance are markets where everything from nationalization or Venezuela or fish to countries in Africa. OK so you're talking on a couple of countries a couple of countries I a whole continent like my problem crypto currency is that I think the social utility is at least in certainly in developed countries is extremely small and the only thing I can really figure out the usage of it is that it's good for speculation and it's good for money laundering. And what I really can't figure out is you know the United States we have massive regulations about money laundering. You know the banks have to comply with rules that from here to my apartment. And there is there are banks in this country today that are certain restrictions because they still not completely comply with the regulations even think about all this and think oh this is an opportunity to sort this thing air has to come out of this because regulation is the reason why it's trying to find one without almost nothing in currency.

And the reason why I'm not interested in investing in bitcoin or shorting bitcoin is to me it's like arguing how many angels dance on the head of a pin. I have no idea how to value it and and are they going to be elst as either.

Steve Eisman

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