Mark Mobius Capital’s founder, an experienced investor and entrepreneur, discusses why bitcoin has been rising in the face of the Russia-Ukraine conflict. “Bitcoin is showing strength now because the Russians have a way of getting money out,” he said.
Mark Mobius on Why Bitcoin’s Price Is Rising
Mark Mobius Capital Partners founder, discussed why bitcoin prices have been rising in an interview on CNBC Tuesday, as tensions between Russia and Ukraine intensify.
Mobius served as executive chairman at Templeton Emerging Markets Group before he started his company. In 1987, he joined Templeton where he oversaw more than 50 billion dollars in emerging market portfolios. In March 2018, he founded Mobius Capital Partners.
Mobius was questioned if he would consider buying bitcoin given the rallying price. “I would not be a buyer,” he replied but noted, “If I was a Russian, I would be a buyer.”
He shared that many foreigners visit Dubai to purchase properties. He detailed: “I was talking to a property agent yesterday. He said they’ll buy anything. They get money out of Switzerland, they have Swiss bank accounts.”
Mobius added: “If they can pay with bitcoin. Of course, that’s an avenue to get money out of Russia.” He continued:
I would say that’s the reason why bitcoin is showing strength now because the Russians have a way of getting money out, of getting their wealth out.
“Otherwise they are really in trouble with all the closures of different avenues for them to transfer money out,” the veteran investor opined.
Mobius is a long-time bitcoin skeptic. Mobius advised everyone not to view cryptocurrency as a way to invest in November 2017. “It’s a means to speculate and have fun. But then you got to go back to stocks at the end of the day,” he advised.
Numerous analysts say they are skeptical that cryptocurrency can be used to help Russia escape sanctions. Ari Redbord from TRM Labs said Monday on CNBC, that Russia might turn to crypto, but there’s not enough liquidity to enable Moscow to deal the U.S. sanctions and other allies.
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