One of the world’s biggest investment firms thinks Bitcoin is worth zero

Bitcoin’s value is zero, but there’s potential in blockchain as technology, says a recent note from Allianz Global Investors (AGI), the investment arm of insurance company Allianz. 

The tone of the note does not differ significantly from similar sentiments expressed by prominent investors like Charles Munger and Robert Shiller, but AGI — a company that manages nearly 500 billion euros ($619 billion) worth of assets as of Dec. 2017 — has expanded on the usual bubble talk a little. 

“What is the fair value of a bitcoin? In our view, its intrinsic value must be zero: a bitcoin is a claim on nobody — in contrast to, for instance, sovereign bonds, equities or paper money — and it does not generate any income stream,” says the note, signed by AGI Head of Global Economics and Strategy Stefan Hofrichter. Read more…

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