Warren Buffett Warns Cryptocurrency Investors that all digital currencies will come to a bad end. Before, he was also stating that Bitcoin is a bubble. Do you share this opinion?
11 January, AtoZForex – One of the most famous investors in the world, Warren Buffet, has previously already warned about Bitcoin. That time, the billionaire investor has stated that Bitcoin is a “real bubble.”
Warren Buffett Warns Cryptocurrency Investors About the Bad End
Back in October 2017, Mr. Buffett has been answering a series of questions during an annual Question-and-Answer session in Omaha. He has touched a topic of cryptocurrency, stating the following:
“People get excited from big price movements, and Wall Street accommodates.”
He also has described Bitcoin as a “real bubble,” while criticizing the idea of applying a value to Bitcoin. Warren Buffet has commented:
“You can’t value bitcoin because it’s not a value-producing asset.”
The latest remarks from Mr. Buffett have only reiterated his stance in regards to the cryptocurrency market. He has stated:
“I can say almost with certainty that cryptocurrencies will come to a bad end.”
His comments were further supported by Charlie Munger, Buffett’s partner at his investment company Berkshire Hathaway. Mr. Munger has described Bitcoin and altcoins rallies as “bubbles”. He also has mentioned that investors “are excited because things are going up at the moment and it sounds vaguely modern. But I’m not excited.”
Bitcoin value takes a hit
In fact, Mr. Munger has been quite critical in regards to cryptocurrencies. In 2017, he has stated that soaring value of the digital currencies is “total insanity”. He also has stated the following:
“I think it is perfectly asinine to even pause to think about them. It’s bad people, crazy bubble, bad idea, luring people into the concept of easy wealth without much insight or work.”
Buffett’s comments appear amidst hard times for Bitcoin. Following the news that South Korea plans cryptocurrency trading ban, Bitcoin’s value has dropped to $14,000.70. The news emerged as a major twist for the crypto space, since South Korea accounts for the majority of cryptocurrency transactions on the market. In fact, more than 10 percent of Ethereum is traded against South Korean Won, the same goes for the 5% of all Bitcoin trades.
As of the moment of writing, the price of single Bitcoin stands at $13,663.50.
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