Peter Mallouk: Now Isn't the Time to Buy Bitcoin | Live Bitcoin News

It seems like you just can’t get a straight answer about bitcoin, these days.

Should We Buy Bitcoin or Not?

The idea amongst many analysts is that bitcoin is going to potentially hedge one’s wealth against inflation and other forms of economic turmoil. Many have said that with the introduction of the stimulus package and most Americans getting $1,200 in their pockets, that the U.S. dollar doesn’t have the same kind of power it once did.

Thus, the idea is that one should invest in bitcoin and gold – at least that’s what a lot of financial experts are saying, but there are a few out there who disagree.

One of those figures is Peter Mallouk, the chief investment officer at wealth management firm Creative Planning. Live Bitcoin News briefly discussed Mallouk in an article published yesterday. However, more details have emerged regarding why Mallouk is so against the idea of bitcoin, and why he’s telling all his customers and listeners that purchasing digital currency of any kind right now is a bad idea.

In an interview with CNBC, he stated:

Every bear market presents opportunities, and it’s tempting, particularly for younger generations, to look for speculative assets. There is no need to go over into the speculative world. It’s a lot sexier to buy things like cryptocurrencies, gold and silver, but… they don’t bring any income to the investor.

He comments that there are too many companies out there with stable stock shares under their belts, such as Disney and McDonald’s. While he acknowledges that the economy has indeed suffered thanks to the coronavirus, he suggests that things are stronger than they would appear. He thus advises people to think more about stocks and government bonds over speculative assets like digital currency.

This is the exact opposite of the advice given by “Rich Dad, Poor Dad” author Robert Kiyosaki, who in a previous interview, advised people to buy up bitcoin, gold and silver – the three assets that Mallouk warns against – now that the economy in America is sinking.

Still, Mallouk isn’t backing down, and suggested that bitcoin is on a “death spiral” that could ultimately take the currency down to zero. In the same interview, he stated:

A bear market puts everything on sale. You have incredible companies that we know are not going anywhere selling for half off.

A Lot of Up-and-Down Behavior

While it’s probably too early to get worried, bitcoin has already sunk a bit over the past 24 hours. Yesterday, the currency was trading at around $9,100, whereas at the time of writing, the price has fallen into the high $8,900 range. Already, the currency has lost close to $200, meaning that speculation is still active, and bitcoin’s volatility is refusing to die out.

Still, the asset is about $5,000 higher than where it stood two months, so maybe BTC has more strength than Mallouk believes.

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