Gary Kasparov: Bitcoin is Pure Speculation

Gary Kasparov believes Bitcoin holds too much volatility and should be a matter of personal risk-taking.

Bitcoin is a phenomenon of the connected society, but its price is pure speculation, believes chess grandmaster and former World Champion Gary Kasparov. 

In an interview at a Lisbon web forum, he spoke to the Proteste Investe magazine, stating that: 

"Even though I’m not an investor but a mere former chess player, I believe bitcoin is pure speculation. Investing is a private matter, and depends only on how much people are willing to risk their money and engage in speculations."

Mr. Kasparov also doubted the safety of Bitcoin because of its anonymous nature. For Kasparov, Bitcoin is the logical product of the digital era and the free market.

Kasparov added that the interest in Bitcoin and its meteoric rise is a sign of stagnation in the world economy. However, other experts beg to differ, such as Black Rock's CEO Larry Fink, who recently called Bitcoin a relatively small asset and noted that the world economy is actually on the mend, rising in unison in the past quarters.

Kasparov also believes most Bitcoin circulation is restricted to exchanges and the digital currency is hardly used for anything beyond speculation.

Kasparov's statements come at a time when mainstream investors are starting to see more value in Bitcoin, with futures coming to the CME Group markets in December.

Bitcoin has always had its share of critical statements, with commodities guru Dennis Gartman stating that Bitcoin is too volatile, and the digital asset is most suited to the tastes of "criminals and millenials".

"How can you buy or sell a painting using bitcoin, when the change in volatility is 20-30-40 percent in the course of a week? It's nonsense," he said. "I shall not trade it," said Gartman on CNBC's "Fast Money" this morning.

At the same time, Bitcoin's market price proves resilient to criticism and the recent transaction difficulties, standing at $6,537.48, though still around $1,300 away from the most recent peak.