Economist Stephen Roach: Bitcoin has the most vertical pattern, therefore yes, it’s a bubble

Bitcoin is a speculative bubble, as told by many traditional economists, including the famous market player who became a prototype for the Wolf of Wall Street protagonist. Even Mike Novogratz, who has a very good feeling about the future Bitcoin prices, has once said: the railroad bubble and the dotcom bubble bursts did not make railroads and dotcoms disappear, and the same is going to happen with Bitcoin — if it is, indeed, a bubble.

Stephen Roach, economist from Yale, advises not to invest in Bitcoin on highest prices: “The one who's made the last investment gets hurt the most, there's no question about it”. He considers Bitcoin a bubble as well, telling that the pattern he sees when he looks at the Bitcoin chart is anomalous, that he had not seen anything that skyrocketing in his life before: “I've never seen a chart of a security where the price really has a vertical pattern to it. And Bitcoin is the most vertical of any pattern I've ever seen in my career”.

The analyst calls Bitcoin “a toxic concept for the investors”, once again stressing it’s better not to rely on it as a means of keeping or multiplying funds. He even says that the plans of CBOE and CME to legitimize this cryptocurrency by trading futures related to it are “somewhat dangerous” too, which might infuriate the corporate members of CME, who, contrariwise, always liked to stress that their platform is going to be fully and one hundred percent compliant with the U.S. financial laws.

Anyway, he does not aggressively promote his views like Jamie Dimon who vowed to fire anyone he finds trading with bitcoins and speaks calmly about all this, which actually helps him to get more people to listen to him. In a CNBC report, he also spoke about Trump’s tax reform just as calmly, which is a big achievement for most Trump’s opponents who, for some reason, can’t stay calm while criticizing.