In 2017, Credit Suisse CEO labeled Bitcoin a "bubble." Since then, Credit Suisse stock has dropped 95%, while Bitcoin's price has risen by 335%
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In November 2017, during a press conference call, Tidjane Thiam, the CEO of Credit Suisse, expressed his skepticism about Bitcoin, stating that it epitomized a speculative bubble. At the time, Bitcoin's price was approximately $7.3k. Thiam's exact words were, "From what we can identify, the only reason today to buy or sell Bitcoin is to make money, which is the very definition of speculation and the very definition of a bubble."
It is worth noting the subsequent events that unfolded. While Thiam's comment seemed dismissive of Bitcoin, the cryptocurrency market has seen significant growth since then. In stark contrast, Credit Suisse, the banking firm that Thiam led, faced numerous challenges and exhibited a decline in its stock performance.
Since Thiam's remark, Credit Suisse stock has experienced a significant decline, plummeting by 95%. This decline is reflective of a broader downward trend in their stock price. The company's financial performance, including revenue, net income, and assets under management, has been consistently decreasing year over year. In fact, a few months ago, Credit Suisse faced a near collapse and was eventually sold to another investment bank in Switzerland at a significantly reduced price. This deal was finalized recently.
In light of these developments, it is interesting to observe the contrast between the anti-cryptocurrency sentiment expressed by banking CEOs, including Thiam, and the subsequent performance of their own institutions. Thiam's skepticism about Bitcoin appears ironic when considering the significant increase in Bitcoin's value since 2017, with a growth of approximately 335%.
To put it into perspective, let's consider a hypothetical scenario. If one had invested $1,000 in Credit Suisse stock and an equal amount in Bitcoin when Thiam made his statement, and had held onto those investments until now without selling, the value would be approximately $50 for Credit Suisse stock and around $4,350 for Bitcoin. This stark difference in returns further emphasizes the contrasting fortunes of the two assets.
It is important to note that this analysis serves as an observation of past events and should not be considered financial advice or an endorsement of any investment strategy. The cryptocurrency market and stock market are subject to volatility and can be influenced by various factors. Individual investment decisions should be made based on careful consideration of personal circumstances.
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