Perhaps Art Cashin, UBS director of floor operations at the New York Stock Exchange, is right perhaps the Bitcoin rally we are seeing since about August is one big case of FOMO (Fear of missing out). But while Cashin goes bearish on that equation, maybe it is all part of the Bull run to mainstream adoption.
Cashin thinks that Bitcoin has gone ‘parabolic’ and that things won’t end well, but a little perspective helps. Factoring in the growth as adoption, and the actual size of Bitcoin, there is no real reason to imagine Bitcoin taking the parabolic shape.
As a UBS trader on the stock exchange, it is easy to see that Cashin is an advocate for traditional investment avenues. Bitcoin breaks with a lot of norms that traditional investors hold dear. It often leads to a negative slant in their view, but their view should still be considered and analyzed.
“Bitcoin has gone parabolic, so that usually doesn’t end well,” said Cashin. “I think we’re in the fear-of-missing-out phase now.”
“I think initially there was some concern. I am told — and take this with a huge grain of salt — that the movement is even beginning to worry some people in the Federal Reserve.”
The points he raises, about fear of missing out, really is the key here. Its parabolic nature and the clear rumor of the concern from the federal reserve should indeed be taken with the specified grain of salt…