â€œThere is no top price for Bitcoin because there is no bottom for fiat money(currency)â€ said Max Keiser, Host of The Keiser Report. Fiat money is currency which does not have intrinsic or use value on its own. It only has value because the government maintains its value.
Keiser, who is also the Co-Host of The Orange Pill Podcast spoke to David Lin, anchor for Kitco News.
â€œIf you are going to price Bitcoin and fiat money, the price is infinity, because fiat money has no bottom, while Bitcoin has no ceiling. If you priced it in ounces of gold, that would be a more valid way to price it,â€ Keiser continued. â€œI am not sure exactly what the exchange rate is for an ounce of gold is to Bitcoin. But whatever it is, you can multiply it by a hundred times and thatâ€™s where we are headed.â€
Keiser, who is a self-proclaimed Bitcoin maximalist, discussed why he does not like altcoins.
Altcoins are all other cryptocurrencies that are not Bitcoin. â€œWhen Bitcoin was found in 2009, it was an absolute scarce digital commodity, and there was no expectation of cashflow,â€ Keiser explained. â€œEverything that came after Bitcoin is essentially saying we are like Bitcoin, but because of the way itâ€™s done there is an expectation of cashflow. Therefore, itâ€™s a security, and the SEC has the right to shut down every altcoin there is. All altcoins are simply unregistered security sales.â€
â€œBitcoin is decentralized, but altcoins are all either absolutely centralized or relatively centralized to Bitcoin. Thereâ€™s a single point of failure, they are easy to take down,â€ he said.
Many cryptocurrency experts have become bullish on Ethereum for many reasons, but not Keiser.
â€œEthereum is centralized garbage, its transactions are reversible as they have been many times in the past. It has a huge pre-mine thatâ€™s dropped onto the market, which is messing up price discovery. Itâ€™s got huge issues in terms of auditing. â€œNobody knows how many Ethereum there are. Nobody in the world knows what the count is,â€ Keiser said.
â€œItâ€™s a completely nebulous number, and the supply keeps expanding extemporaneously depending on the central committee of Ethereum that decides, without any understanding by the market what is going on to run the networks,â€ Keiser emphasized. â€œItâ€™s all centralized, itâ€™s easy to attack, and it will be attacked. You see all kinds of price movements on a short-term basis.â€
â€œItâ€™s not easy to understand why certain things are trading the way they are because you have dislocations and price disparities and markets all the time,â€ he added.
For more on Keiserâ€™s views on cryptocurrency, watch the full video above. Follow David Lin on Twitter @davidlin_tv (https://twitter.com/davidlin_TV).