Bitcoin is not going away, Morgan Stanley chairman, James Gorman, said but warned that not everybody should jump on the bitcoin bandwagon.
Speaking to Bloomberg at Davos, Mr Gorman said: “I’ve said it before and I’ll say it again.
“I think Bitcoin is not going away, it’s not a fad.
“But the aggregate market cap, if you will, of bitcoin globally is less I think than twice the value of Morgan Stanley today so in terms of-“
Bloomberg Editor-in-Chief John Micklethwait cut in, saying: “So they could buy you? A majority stake.”
Mr Gorman replied: “Well I was making a far different point that we think we’re an important institution but we don’t deserve the kind of press that bitcoin is getting every day.
“Bitcoin is punching above its weight, it’s speculative.
“It’s fulfilling a need apparently at the moment but it’s not something that is fundamentally changing the global landscape.
“For the average investor, no, I would advise them not to be investing in those kinds of speculative” assets.
Bitcoin and the cryptocurrency mania which includes Ripple and ethereum has been met with scepticism by institutional investors, but that has not stopped the digital currency from rocketing in price the last few months.
Bitcoin detractors were served a fresh round of ammunition on Wednesday after Goldman Sachs confirmed all concerns about the instability of the virtual token.
Goldman Sachs’ analysts have compared bitcoin’s growth to the disastrous 17th century tulip mania, saying the situation has now moved beyond “bubble levels”.
The investment group pulled no punches insisting it does not believe the currently reigning cryptocurrencies will hold onto their values in the long run.
Goldman Sachs wrote in a statement: “The price moves in cryptocurrencies and in the share prices of companies with new cryptocurrency or blockchain affiliations reminds us of a comment made by a Dutch historian, Theodorus Schrevelius.
“He wrote, in 1648, 11 years after the collapse of tulip prices, that ‘our descendants doubtless will laugh at the human insanity of our Age, that in our times the tulips had been so revered’.”
Bitcoin climbed 3.01 percent to $11,166.61 at 22:38 in London, according to CoinDesk.com