'Buy It': Hedge Fund Veteran Backs Bitcoin Amid Bleak U.S. Economic Forecast

John Moore
  • Morgan Creek CEO Mark Yusko gives CNBC's Fast Money a bullish outlook for Bitcoin
  • While predicting a bad 2020 for the wider US economy, he says "all the indicators of the network, and the network value, are rising."
  • Emphasises that the day to day price doesn't matter, and compares Bitcoin to the fortunes of Amazon stock

Respected hedge fund veteran Mark Yusko has once again warned investors on the dangers of letting short-term trials and tribulations in Bitcoin's markets divert their attention from its value as a long-term investment. 

Speaking to CNBC Fast Money on Thursday, amid a less than bullish assessment of the state of the stock markets and the economic outlook for the global economy, Yusko was emphatic regarding his stance on the cryptocurrency. "Buy it,” was the simple take from the founder and CEO of Morgan Creek Capital, who then went on to assert that the day-in-day-out price of bitcoin “doesn’t matter.” 

His reason for being so positive? Yusko pointed to a consistent year-on-year growth in market cap since 2009. "It's been alive for 10 years. In every year apart from 2015 it's made a higher low," He added. 

Every fundamental of Bitcoin: usage, wallets, block size, transaction size, number of transactions, hash rate... Every single one is making new highs. All the fundamental indicators of the network and the network value are rising.

Getting into the subject, and comparing Bitcoin to the fortunes of more widely traded assets, he likened the rise of BTC many companies on the stock market, saying "the price of any asset fluctuates..."

"Let's take Amazon," he continued. "In every year, including this year, it's seen a double digit drawdown; the average, peak-to-trough has been 31%. (...) Twice, it's been minus 90%. When was the right time to sell? Never."

Yusko, whose company began its own crypto fund in the summer of 2018, has long held a bullish view on Bitcoin. Earlier in July this year he predicted a move to $30,000 for BTC on the same show, with a move to $100,000 by 2021. However, reality was a little less stratospheric, with BTC never moving beyond the highs around $13,000 it saw in June, and eventually losing around a third of its value in a retreat to $8,000 and below over the last few days.