Guggenheim Partners: Cryptos Are a Bubble

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Scott Minerd, CIO of Guggenheim Partners, has said cryptocurrencies are a bubble and has compared the current situation of the market with the “tulip mania.” He has said on Twitter:

Crypto has proven to be Tulipmania. As prices rise, tulip bulbs and #crypto currencies multiply until supply swamps demand at previous market clearing prices.

— Scott Minerd (@ScottMinerd) May 19, 2021

However, it has not taken long before he has received a response from Compound founder Robert Leshner, who has told him that he is absolutely wrong, claiming is statement is “bordering on financial incompetence.” According to him, the supply of BTC and other digital assets does not increase when prices go up.

As part of the thread, Lark Davis, a popular crypto blogger, has said that Minerd is wrong and that just like it happened with the tulip mania, the flowers did not disappear, and this will be also the case of cryptocurrencies.

Dude, wasn't your company going to invest hundreds of millions into #bitcoin? This comment shows you guys must have done almost no research on the topic, shocking.

— Lark Davis (@TheCryptoLark) May 19, 2021

The discussion has taken place right when the crypto market is experiencing significant losses, probably driven by China‘s decision to ban banks from offering their services to cryptocurrency-related businesses.