Warren Buffett Delivers A Fatal Blow To Crypto World By Comparing Bitcoin To a Bubble
In spite of gaining worldwide acclaim, Bitcoin couldn’t manage to make everyone happy. And count billionaire Warren Buffett stands out as a glaring example to this theory with his skeptical way of perceiving the crypto world. According to a report published by MarketWatch, Buffet recently pointed out that, “People get excited from big price movements and Wall Street accommodates.”
Bitcoin is trading at almost $5800 with a market cap of $96,464,643,230 at the time of publishing this article. Bitcoin is being used at an increasing scale by individuals for engaging into transactions bypassing the traditional banking methods. However such widespread reach cannot boil down its inherent volatility and lack of government backing.
Buffett recently told MarketWatch that: “You can’t value bitcoin because it’s not a value-producing asset.”
He also added that it is next to impossible to correctly predict the rise in Bitcoin’s price since it is a “real bubble in that sort of thing.” Till date, Bitcoin had been at the receiving end of mixed responses from top bosses around the world. Jamie Dimon, the CEO of JPMorgan Chase announced last month that Bitcoin is a “fraud” which just simply “isn’t going to work.” He added, “You can’t have a business where people can invent a currency out of thin air and think that people who are buying it are really smart.” He also pointed out that those who are buying Bitcoins are stupid.
Peter Thiel, a Silicon Valley Billionare spoke out in favour of Bitcoins this week but stating that it is “very underestimated” given the potential it holds as a dynamic currency. During an interview held in Riyadh, Saudi Arabia, Thiel told Maria Bartiromo that, “it’s like a reserve form of money. It’s like gold and it’s just a store of value. You don’t actually need to use it to make payment.”
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