During a Q&A session in his hometown of Omaha, Nebraska, philanthropist Warren Buffett shared once again his opinion on Bitcoin, a view that won’t convince people to invest in digital currency, informs BusinessTech.
Bitcoin, a cryptocurrency roller coaster
“People get excited from big price movements, and Wall Street accommodates. You can’t value Bitcoin because it’s not a value-producing asset,” said Buffett, also adding that the price of Bitcoin is a roller coaster and you can’t simply predict how it would go on in the future. The world’s third richest man with a fortune of $81.1 billion, Warren Buffett has always run against cryptocurrency.
For now, Bitcoin has settled around $5,900, after recently topping $6,000 for the first time. If we’re talking about the whole year, it’s up 500%.
JPMorgan Chase CEO Jamie Dimon declared that Bitcoin is “a fraud” that “won’t end well,” and Warren Buffett seems to share his belief. The 87-years old business magnate said in the best that his company, Berkshire Hathaway, has not moved a dollar to Bitcoin.
Not everybody shares the same opinion with Mr. Buffet
While Buffett keeps some kind of neutral voice regarding the subject, Dimon repeated at an investor conference in New York that Bitcoin is eventually going to fail and that is “worse than tulip bulbs.”
“Everyone always thinks about going to Bitcoin as a conservative position,” said Stan Miroshnik, chief executive of the Element Group, thinking about the hard fork that created Bitcoin Gold and a moment of uncertainty in the market. But there’s the bonus of additional coins being issued to owners if developers split the blockchain, therefore creating a big dilemma.
As Bitcoin sees in sight another record high, prices of many tokens that startups sold to raise capital are crashing. The Bletchley Ethereum Token Index is down nearly 16% in the last month. According to Lucas Nuzzi, a senior analyst at Digital Asset Research, around 10% of the money invested in tokens has already been thrown out the window because of the software switch.