“Bitcoin is magical thinking and a cult”: at Barclays, we don’t mince words

An agitated old school detractor – While more bankers admit the value of cryptocurrency, some remain reluctant. This is the case of this leader of the British bank Barclays, who considers no more and no less the crypto-enthusiasts as the fanatic followers of a strange sect.

Bitcoin supporters, just fanatics?

In an interview with Business Insider, Will Hobbs , CIO of Barclays Wealth & Investments, gives his opinion on Bitcoin. And the least we can say is that it’s not a pretty sight.

The Barclays investment banker not only began by pointing out that his company was not interested in Bitcoin, but also believed that the famous cryptocurrency was only supported by „a lot of magical thinking“ . Will Hobbs goes on to say that “it sounds like religion” and that Bitcoin has increasingly been “cult” .

He even wants to add that:

„[Bitcoin] is much more volatile than our most volatile asset class, namely equities from emerging markets (…) For an asset to be part of our asset classes, it must meet a certain number of criteria. First, it must obviously have a positive expected return. Then, it must have some appeal in terms of diversification. “

Yes but… all is not lost!

However, and despite his apparent hostility to the king of cryptos, the banker is obliged to recognize certain qualities in him , or at least certain properties: „for the moment, [Bitcoin] is above all a store of value (…)“ .

And while Barclays W&I’s choice for now is to stay away from BTC, Will Hobbs also concedes that things could change :

“It may well be that over time, Bitcoin meets our 2 criteria (positive returns and diversification). But for now, it’s very hard to say (…) For now, we are waiting on the sidelines, and we are watching the others [buy BTC]. “

They prefer to wait, because if the interest rates on government bonds were to turn significantly positive , then Bitcoin would be like „a bird without wings“ which would lose all its interest.

Barclays remains an old-school crypto-detractor like no other. At least she’s not totally adamant about the future of Bitcoin. Will Hobbs even admits its potential as a store of value.