Wall Street veteran Steve Eisman of “The Big Short” fame infamously described as the cratering of the sub-prime mortgage market ten years ago, however, he misunderstands cryptocurrencies.
Eisman, who is presently managing a portfolio at Neuberger Berman, was part of the few hedge fund managers to speculate the housing crisis. Now rather than take advantage of the popular trend of cryptocurrencies, he is finding it difficult to find “purpose” or “value” in the market, noting during a convention in Hong Kong that the bitcoin is driven by “speculation” and criminal activity.
“I don’t see the purpose of it. What value does cryptocurrency actually add? No one’s been able to answer that question for me.”
He is also following the stance if billionaire investor Warren Buffett, who has the same opinion regarding the cryptocurrency market. For now, Eisman is known to be on the same track with Buffett on topics relating to executive compensation.
Berman, however, seems to be keeping an eye on cryptocurrency regulations, claiming he “doesn’t understand” why the market is not controlled “more heavily.” The response is that while policymakers are set to regulate the market, don’t want to create laws that will hinder the development. According to former Fed Chairman Alan Greenspan, whom according to Eisman was “the worst Chairman of the Fed in history”, it’s a “conundrum” that they are working tirelessly to handle.
Maybe Eisman, whose career was the central point in Michael Lewis’ bestseller the Big Short and who was depicted as a hedge fund manager by Steve Carell on the big screen has been seeking for answers in the wrong places.
“I don’t touch it. I don’t know what I’m looking at…I have no interest,” noted Eisman at the conference, going further to say he avoids investing in any form of currency not only the crypto kind.