A primary investor and founding partner of Mobius Capital Partners, Mark Mobius, is still bearish on cryptocurrencies and blockchain technology with a few caveats.
Speaking on CNBC’s The Squawk Box on September 5 concerning developing markets and safe-haven asset classes, Mobius stated cryptocurrencies, like fiat, are backed by confidence and only hold utility as far as others are willing to utilize them.
“The bottom line is there is a whole generation of people who have faith in the internet, they have faith in these cryptocurrencies…the degree to which a cryptocurrency can enable you to buy something and you believe that to be the case, then that’s fine.”
However, Mobius stated a gold-backed crypto run on the blockchain would be of interest. “If there is a cryptocurrency that is really backed by gold and there is a meaningful agreement and some kind of modern thing connection, then this could be quite interesting,” he stated.
The investor remains doubtful on blockchain. Mobius stated the basic innovation itself continues to be susceptible to attacks.
“I believe blockchain is a very high-risk situation . . . anything that’s created by man can be broken into . . . and it could create a big crises, so I think we have to be very careful with blockchain.”
The comments follow the stablecoin issuer Paxos’ declaration of a gold-backed cryptocurrency on September 5. Pax Gold (PAXG), which is tokenized on the ethereum blockchain, entitles holders to a gold bar stored in the Brink’s London vault.