Equity Group Investments founder and chairman Sam Zell says he is skeptical about bitcoin, but admits it could be part of the solution. In particular, the billionaire and real estate mogul thinks the bitcoin community is made up of many individuals that he is not fond of.
Fast speaking characters
In comments made during a interview, the billionaire, who predicts that the US dollar will lose its status as the world’s reserve currency within the decade, has no kind words to some unnamed individuals in the bitcoin space. One report quotes Zell’s comment:
To be honest, I am very skeptical about bitcoin. Ultimately, it could be the answer or one of the answers. But right now it’s a world extraordinarily populated by chameleons and other fast-talking characters. I don’t believe everyone involved is the kind of people I would like to follow.
Although the billionaire does not explain how BTC could be one of the answers, however, the same interview gives some hints as to why Zell thinks that. When talking about the possibility of the US dollar losing its reserve status, Zell warns:
“If we keep doing what we’re doing now, I think it will be ten or fifteen years. If we lose reserve status, I could see a 25% reduction in our standard of living. “
US dollar currency status
Meanwhile, other individuals and organizations, including the International Monetary Fund (IMF), seem to share the billionaire’s sentiment about the future status of the US dollar. The IMF says central banks must now consider the possibility of replacing the dollar with other alternatives, including digital currencies.
Zell, for his part, warns of the disastrous consequences that lie ahead if the tradition of “unlimited debt and irresponsible action” does not end. Many analysts, including bitcoiners, see excessive borrowing and printing of money as the main cause of the US dollar’s depreciation. The resulting diminished dollar value then forces some investors to look for and invest in inflation-resistant assets such as fiat money. Bitcoin turns out to be such an asset.
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