<\/p>\n
One of the investors who called and profited off the subprime mortgage collapse of 2008 says crypto is currently one of three major themes driving today\u2019s narrative \u2013 but he still isn\u2019t a fan of it.<\/p>\n
In a new interview on Bloomberg Television, Steve Eisman of Neuberger Berman says that artificial intelligence (AI), infrastructure, and crypto.<\/p>\n
While he gets the first two themes, Eisman says he doesn\u2019t believe in crypto.<\/p>\n
According to the investor, digital assets have a thesis of being a hedge against inflation and fiat currencies, but then contradict it with their correlation with risk assets and the Nasdaq.<\/p>\n
\u201cLet\u2019s ask the people who own crypto. Why do they own it? They all say the same thing thing. They say\u2026 It\u2019s a hedge against the demise of fiat currency. Cats and dogs will one day lie together, you\u2019ll be in a cave but at least you\u2019ll have your crypto. It\u2019s like digital gold, that\u2019s the thesis.\u00a0<\/em><\/p>\n Okay, let\u2019s take them at their word. So if that\u2019s the thesis, then on days where everybody\u2019s worried about inflation, they\u2019re worried about the deficit, the Nasdaq is down 300 points and interest rates are up, crypto should be up.\u00a0<\/em><\/p>\n And on days where everybody\u2019s feeling great, NVDIA\u2019s up, and Nasdaq is up and rates are down and nobody cares about inflation, crypto should be down. And does it act that way? It does not. It acts exactly the opposite of its own thesis. Its correlation to Nasdaq is like 75%.\u00a0<\/em><\/p>\n So to me, it\u2019s just another way for people to speculate on speculating. There\u2019s no data point of research that says it is right says that it is wrong.\u201d<\/em><\/p>\n