He said that bitcoin is now showing strength because Russians have a method of getting their money out.
Mark Mobius: Why Bitcoin’s Prices Are Rising
Mark Mobius, founder of Mobius Capital Partners explained why bitcoin prices have been rising in an interview with CNBC Tuesday, as the Ukraine crisis escalates.
Mobius was the executive chairman of Templeton Emerging Markets Group before he started his own company. Mobius joined Templeton in 1987, where he was responsible for managing more than $50 billion worth of emerging market portfolios. In March 2018, he founded Mobius Capital Partners.
Mobius was asked if he would buy Bitcoin in this market, as BTC prices are rising. He said, “I wouldn’t be a seller,” but added, “If you were a Russian, I would buy.”
He shared that many foreigners visit Dubai to purchase properties. He said: “I was speaking to a property agent yesterday. He stated that they would buy any item. They have Swiss bank accounts and they get money from Switzerland.
Mobius said: “If they are able to pay with bitcoin. “Of course, that’s a way to get money from Russia,” he continued.
That’s why bitcoin is gaining strength, I believe. The Russians have a way to get their money out and thus can access their wealth.
The veteran investor stated that they were in serious trouble because of the closings of various avenues to get money out.
Mobius is a long-time bitcoin skeptic. He advised people to not view cryptocurrencies as an investment option in November 2017. It’s a way to speculate and have some fun. He suggested that you have to return to stocks at the end.
Many analysts believe that cryptocurrencies cannot help Russia avoid sanctions. Ari Redbord, a representative of TRM Labs, stated on CNBC Monday that Russia will use cryptocurrencies but there isn’t enough liquidity on those markets to enable Moscow to respond to the severe sanctions imposed by Washington and its allies.
