Vanguard Maintains Skepticism Towards Bitcoin And Cryptocurrency

According to ShibDaily, Vanguard, one of the world's largest investment firms, continues to express skepticism about Bitcoin and the broader cryptocurrency market. The firm dismisses these digital assets as speculative and lacking tangible value, despite growing interest from various companies. Vanguard recently reiterated its stance, stating that Bitcoin "has no role in long-term investment portfolios" due to its speculative nature. Duncan Burns, Principal and CIO of Vanguard Asia-Pacific, highlighted the investment community's ongoing struggle to establish Bitcoin's superiority in the market. He described the digital asset sector as "weak," noting that while some speculators have profited from cryptocurrencies, many have incurred losses, and he anticipates more will lose money in the future. Burns emphasized concerns over Bitcoin's value proposition, pointing out its lack of cash flow and inability to be objectively valued. He criticized Bitcoin's speculative price, which is not anchored to any economic fundamentals. Despite the U.S. Securities and Exchange Commission's (SEC) approval of Bitcoin and other crypto ETFs, Vanguard, a leading ETF provider, has consistently opposed cryptocurrency and has no plans to offer these products to its clients. In contrast, Michael Saylor, co-founder and former CEO of MicroStrategy, has been vocal about Bitcoin's potential as a powerful store of value and a hedge against inflation. Under Saylor's leadership, MicroStrategy has made Bitcoin a core part of its corporate strategy, amassing 423,650 BTC, valued at approximately $42 billion. Saylor criticized Vanguard's stance on social media, arguing that the firm's dismissal of Bitcoin's role in investment portfolios is shortsighted. He compared Vanguard's position to that of outdated companies like Yahoo, suggesting that their failure to embrace Bitcoin could render them irrelevant. Saylor has consistently highlighted Bitcoin's scarcity and decentralization as advantages over traditional currencies, particularly in uncertain economic times. While some companies remain cautious or skeptical about incorporating Bitcoin into their financial strategies, MicroStrategy's commitment has prompted other businesses to consider the potential benefits of holding this asset.