Mobius Capital Founder Explains Why Bitcoin is Rallying Amid Russia-Ukraine War – The founder of Mobius Capital, veteran investor Mark Mobius, discusses why the price of bitcoin is rising as the Russia-Ukraine issue worsens. He stated, “Bitcoin is showing strength now because the Russians have a mechanism to transfer money out.”
In an interview with CNBC on Tuesday, Mark Mobius, the founder of Mobius Capital Partners, explained why the price of bitcoin has been rising as the crisis between Russia and Ukraine worsens.
Mobius was the executive chairman of Templeton Emerging Markets Group before starting his own firm. In 1987, he joined Templeton, where he oversaw portfolios worth more than $50 billion in emerging economies. He founded Mobius Capital Partners in March of 2018.
Mobius was asked if he would buy bitcoin in this situation, given the price of the cryptocurrency is rising. He said, “I would not be a buyer,” but added, “If I was a Russian, I would be a buyer.”
He went on to say that a lot of foreigners come to buy apartments in Dubai, where he lives. They’ll buy anything, he said. They have Swiss bank accounts and get money out of Switzerland.”
“If they can pay with bitcoin,” Mobius added: that is, of course, a way to move money out of Russia.”
He went on to say:
“That, I believe, is why bitcoin is gaining traction now – Russians have a mechanism to get their money out, to get their wealth out.”
“They are truly in trouble,” the veteran investor added, citing the closures of several ways for them to transfer money out.”
Mobius has long been a skeptic of bitcoin. He warned people not to look at cryptocurrencies as a way to invest in November of last year. “It’s a means to speculate and have fun.” “However, at the end of the day, you must return to stocks,” he advised.
Cryptocurrencies, according to a number of analysts, are unlikely to assist Russia in evading sanctions. On CNBC Monday, Ari Redbord of TRM Labs explained that while Russia would resort to cryptocurrencies, there isn’t enough liquidity in those markets to allow Moscow to deal with the US and its allies’ harsh sanctions.