Billionaire private equity titan David Rubenstein has revealed he believes cryptocurrencies like bitcoin are here to stay, dismissing suggestions the market is a fad and could fade away in the future.

Speaking to CNBC on ”Squawk Box,” Rubenstein said he hasn’t personally invested in cryptocurrencies directly but has invested in companies that facilitate cryptocurrency trading. He did it, he said because he thinks “it’s here to stay” and “is not going away, just like gold is not going away.”

Rubenstein, a former government official who co-founded private equity firm Carlyle Group, added that to some investors bitcoin is a substitute for gold. His comments came one day after the cryptocurrency market crashed and bitcoin’s price plunged to a $32,000 low before recovering to $39,000.

Other top cryptocurrencies also saw their prices plunge. Ethereum, the second-largest by market capitalization, dropped from a $4,300 all-time high to $1,900 before recovering.

Rubenstein added:

It has its ups and downs, and yesterday was not a good day. that’s true of anything that is relatively new, and I don’t think you’re going to see anything like crypto going away and disappearing. It’s here.

The CEO added that there’s an appetite for an alternative to the current financial system, regardless of whether people believe cryptoassets are “right or wrong.” As for their volatility, he said investors should “expect big ups and downs and big fluctuations.” If they aren’t prepared for it, they should not invest in the space.

While some believe the cryptocurrency space was in a bubble that has now popped, some prominent investors argue there’s still room to grow.  As covered, former  White House Director of Communications Anthony Scaramucci, the founder of global alternative investment firm SkyBridge Capital, has revealed that despite the massive sell-off in cryptocurrency markets this week, he believes the bitcoin bull run isn’t over.

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.
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