Wall Street Big Shots Look at Crypto | Bitcoin and Gold Lack Intrinsic Value, Helium (HNT) Seen as Interesting

American billionaire investor Bill Ackman recently shared his views on cryptocurrency at a conference, stating that he would not invest in Bitcoin because it is purely a speculative asset: "Its value is solely based on the willingness of others to buy at a higher price."

Who is Bill Ackman?

Bill Ackman is a controversial investor who has targeted Herbalife's direct selling business model multiple times and shorted the stock, even prompting investigations into his trading activities by New York state and federal authorities.

During the global financial markets' multiple circuit breakers and crashes in March last year, Bill Ackman tearfully warned of "hell is coming" on a program and pleaded for a 30-day national lockdown by Trump. However, he later took a hedging strategy and exited with a profit of $2.6 billion by the end of March, gaining significant attention.

Researching Cryptocurrency Helium HNT

Despite Bill Ackman's reservations about Bitcoin, he remains interested in the technology behind cryptocurrencies and mentioned Helium HNT.

Founded in 2013, Helium has received backing from institutions such as Union Square Ventures and Multicoin Capital.

Helium is a decentralized peer-to-peer wireless network protocol that allows users to transmit device data by establishing and protecting network infrastructure. Users are rewarded with HNT tokens by proving their contribution to the network through the consensus mechanism Proof of Coverage.

Cryptocurrency Here to Stay

Ackman stated that he is expanding his knowledge of cryptocurrencies and finds it an intriguing phenomenon, but clarified that neither he nor his firm Pershing Square has invested in any projects or cryptocurrencies yet. He emphasized:

I think cryptocurrency will continue to exist. It's an interesting phenomenon in terms of the opportunities it presents, but I wouldn't invest in speculative assets like Bitcoin or other cryptocurrencies. For me, intrinsic value is driven by cash flows, and you must be able to build a discounted cash flow model for it to make sense.

Gold Also Lacks "Intrinsic Value"

Ackman previously expressed a similar view on Bitcoin at an event hosted by The Wall Street Journal, but surprisingly, he holds the same opinion about gold:

If the market thinks I don't understand Bitcoin, then I apologize. However, I admire the trading value that cryptocurrencies bring, including Bitcoin, and Ethereum hit record trading volumes on Wednesday, 5/12. But I still believe the biggest flaw of cryptocurrencies is that they lack intrinsic value, just like gold.