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Stay Away From Bitcoin, It's an 'Absolute Bubble' Says Tocqueville's Hathaway

Idea that Bitcoin is Hurting Gold is 'Baloney' says Tocqueville's John Hathaway

KITCO NEWS -- Tocqueville's Chairman John Hathaway doesn't mince words when it comes to to talking bitcoin.

When asked about the cryptocurrency craze, Hathaway, manager of the $1.2 billion dollar Tocqueville gold fund, simply said, 'garbage.'

"It's an absolute bubble -there's no question in my mind that it's in a bubble," he said on the sidelines of the precious metals summit in Beaver Creek, Colorado.

Since the start of the year, bitcoin has rallied over 300% and is currently trading over $3,800.

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"Sure you can make money in bubbles any time but you have to get out. Let's not forget that the total market value of these cryptocurrencies is $180 billion or so, maybe a little less now -that's tiny compared to gold."

In a recent talk, Allianz' chief economic adviser, Mohamed El-Erian said that the recent interest in the cryptocurrencies is taking away from a gold rally. Other experts have echoed the same concerns.

Hathaway thinks otherwise.

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This article is commentary by an independent contributor.