Platinum Asset Management founder and billionaire Kerr Neilson has acknowledged the “fantastic rise” of the virtual currency Bitcoin but predicts its meteoric climb will be ultimately felled by the acts of global regulators.
In Platinum Capital’s quarterly report to investors, Mr Neilson - who has been named one of the world’s 99 greatest investors - opines on Bitcoin extensively in a twist on his regular and closely followed commentary about global equities.
He describes the Bitcoin structure as “a remarkably clever concept, seductively so for tech geeks” but is also mindful of its shortcomings including the volatility that has seen the value of the units rise from $US12 to more than $US1000 in the space of 12 months.
“One suspects that the heavy hand of State will nip this tulip in the bud and if not, it will probably prove an interesting marker for current market excesses, complementary to the art market and high-end property,” he said.
Platinum Capital had a stellar year for its investors, recording a return of 50.1 per cent before tax, which beat the MSCI World Index by 7.6 per cent. Among its trades, it sold Adidas and Sotheby’s and bought or added drug makers Sanofi, Novartis, AstraZeneca and Daiichi Sankyo.
Source: http://www.smh.com.au/business/markets/bitcoin-will-be-felled-by-regulation-kerr-neilson-20140110-30ljr.html
Topic: Bitcoin will be felled by regulation or.. (Read 626 times)
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