Key Takeaways
- Gary Gensler says Bitcoin could endure due to global interest.
- He warned that most altcoins lack fundamentals and are driven by sentiment.
- Gensler compared Bitcoin to precious metals like gold.
Former U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler believes Bitcoin has lasting potential, but warns that most altcoins lack the fundamentals to survive long term.
Speaking in an interview with CNBC, Gensler said Bitcoin’s endurance comes from broad global interest, not fleeting market trends.
Global interest
Gensler said:
Something like Bitcoin may persist for a long time because there’s 7 billion people around the globe, a real keen interest in it.
Concerns about altcoins
While he avoided commenting on recent court decisions dismissing several enforcement actions brought during his tenure, Gensler used the opportunity to caution against sentiment-driven assets.
He noted that many tokens lack real financial underpinnings and rely almost entirely on hype.
Market sentiment vs. fundamentals
Gensler suggested that many altcoins are unsustainable and will lose value over time:
This field is almost 99, or maybe one might say 100% sentiment and very little on fundamentals.
Bitcoin as digital gold
Drawing a comparison to commodities, Gensler argued that Bitcoin holds a special status, akin to gold.
He remarked:
There’s only two or three precious metals. We humans have a certain fascination with two or three precious metals like gold.
He implied that Bitcoin belongs to a rare class of enduring assets.
Personal investment stance
Despite his recognition of Bitcoin’s role, Gensler disclosed that he does not hold any Bitcoin or digital assets himself.
