Scott Minerd, the chief investment officer of Guggenheim Investments, has rehashed the most overused critique of cryptocurrencies, comparing them to the Dutch tulip bubble from the 17th century in his recent tweet:
Crypto has proven to be Tulipmania. As prices rise, tulip bulbs and #crypto currencies multiply until supply swamps demand at previous market clearing prices.
Minerd’s bearish take comes after the cryptocurrency market cap shed $1.4 trillion in eight days.
On May 19, the industry saw its worst crash since March 13, 2020, with multiple major altcoins erasing more than half of their value.
As reported by U.Today, Guggenheim predicted that Bitcoin could climb to $600,000 in early February.
While Minerd’s comment has attracted strong rebukes within the community, but Galaxy Digital CEO Mike Novogratz claims that he has a point:
This is an interesting point. The proliferation of cryptos is a supply response that overwhelms demand. Same happened in 2017. Strong belief that the best projects with utility and community will survive and thrive.
Novogratz is a strong critic of meme coins like Dogecoin.