On a bitcoin bet, it’s the exchanges that will come out ahead, according to Alpha One Capital Partners founder Dan Niles.
“You don’t go out and mine for gold, you go ahead and you sell the picks and the shovels,” Niles told CNBC’s “Squawk Alley” on Monday.
“We don’t think it’s a real currency, but we think it’s going to continue to grow especially the underlying blockchain technology.”
The coins are fast approaching a bubble, he said, and the thing with bubbles is, “they can always go a lot higher than you anticipated, then you get a shakeout, and then things start to grow.”
“We’ve got a shakeout coming at some point.”
Source: Tech CNBC
The smart play on bitcoin: Don't mine the gold, sell the picks and shovels