Mark Mobius, a renowned emerging markets investor, has warned of a possible cryptocurrency crash that could hit global stock markets.

“Cryptocurrency is something that could really blow up. If bitcoin crashes, it will probably affect stock markets across the world, although temporarily,” Mobius told FT.

After the launch of the world’s first bitcoin futures-based exchange-traded fund by ProShares on October 19, the price of bitcoin skyrocketed to a record high of more than $66,000.

Since the beginning of October, digital currency has increased by about 50%.

The 85-year-old investor, on the other hand, expressed concern about the interest rates offered to investors by various crypto exchanges and platforms.

On certain cryptocurrencies, Coinbase offers annual interest rates of up to 5%. According to their respective websites, Gemini offers an 8.05% yield and Hodlnaut members can earn up to 12.73% on their crypto holdings.

Mobius stated that some investors were flocking to cryptocurrencies because the interest rates on offer were significantly higher than those on bank accounts.

“This is the kind of thing central banks should be paying attention to,” he said.

“If interest rates are so low, it hurts the guy on the street. They are forcing people to gamble. I don’t know what central banks are thinking. It’s a big, big danger facing us.”

Image Credit: Getty

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