Warren Buffet is the famous business tycoon of America and is also known as one of the most successful investors. Buffet is having a worth of around $90 billion. Recently, he has given a bitter comment against the flagship of the cryptocurrency that is Bitcoin. He stated Bitcoin as a gambling device by saying,
“It’s a gambling device… there’s been a lot of frauds connected with it. There have been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything.”
Previously he was the one to compare cryptocurrency with the rat poison. Recently he was the one to state that Bitcoin is not safe at all as there have been many disappearances.
Bitcoin cannot be considered as a proper investment
Buffet pledged almost 98 percent of his money to charity. This takes place only via the Bill and Melinda Gates Foundation. According to Buffet Bitcoin never does anything. He claimed the cryptocurrency of the world which is dominant that is Bitcoin to be sitting and doing nothing. He also stated that there is no meaningful purpose for these Bitcoins.
JP Koning is one of the renowned economist as well as an active blogger. There was acknowledgment towards the statement of Warren Buffet from the side of JP Koning. He supported Buffet and said that he was right with his verdict. JP Koning made the opinion of Buffet stronger by saying that the use of Bitcoin mainly takes place for gambling or speculative trading. Koning continued:
“The features that make bitcoin such a popular gamble interfere with its functionality as a payments system. Only die-hard fans or folks who lack access to regular money will ever be willing to ignore this awkwardness [and] use it for payments.”
But it can be noticed that the market cap of Bitcoin is almost around $101 billion. There was an increment in this field from $ 89 billion within two weeks.
Reacting on Buffett and Koning’s statements, Arthur Breitman who is the Chief Technology Officer at Dynamic Ledger Solutions, an organization that is centered around the continuous advancement of Tezos, questioned:
“How many stores of values do you know that don’t represent anyone’s obligation towards you, that can be self-custodied and moved around easily?”
Bitcoin may be a value store against gold
It can be said that Bitcoin is a value store which rivals the gold. This basically helps a person in sending money to their near and dear ones at a very cheap but a faster rate.
A previous Google engineer and broadly pursued analyst on Bitcoin, Vijay Boyapati compared Bitcoin with Gold. He joined the twitter post by saying:
“Bitcoin is not PayPal 2.0; it’s Gold 2.0. Not unsurprisingly Buffett has a poor history of understanding gold’s value proposition.”
Buffet also stated about the massive size of Blockchain, but he also said that there was no need of JP Morgan for Bitcoin that came with their own cryptocurrency.
One necessary thing which everyone must be kept in their mind is that the Berkshire Hathaway which is considered to be his own company’s stock is having an underperformance. It can be said that the stocks are actually in the middle of the Bull Run with a gain of around 8 percent against a percentage having double-digit with S&p 500. So Buffet is not at all able to see the value in the cryptocurrency and moreover do not wants to see.