Friday, 25 May, 2018

Billionaire investor Warren Buffett says no to Bitcoin. Here's why

Billionaire investor Warren Buffett says no to Bitcoin. Here's why Gates and Buffett bully bitcoin
Kenneth Drake | 10 May, 2018, 14:25

For a day, the value of "digital gold" fell by 9% after a sharp statement by the head of Microsoft on CNBC to bitcoin.

Vice President at Berkshire Hathaway, Charlie Munger, was first to lay into Bitcoin.

"If there was an easy way to do it, of course I reduced it."
"People like to speculate, they like to gamble".

Like other cryptocurrency bears, Bill Gates conceded that blockchain, the technology behind bitcoin, can be very useful but said virtual currencies are nothing more than insane, speculative investments.

Buffett said that person did the right thing - selling bitcoin - and said investing in shark's teeth, seashells or tulip bulbs follows the same principle: hoping someone else offers a higher price.

Bill Gates, Microsoft Co-founder, also was bearish about cryptocurrency when he spoke in the same interview on Monday.


In his joint interview with legendary investor and CEO of Berkshire Hathaway Warren Buffett and the company's vice chairman Charlie Munger for CNBC, he expressed his view on the nature of Bitcoin and its future. What Buffett was saying about bitcoin was that you can buy it, but it will never produce anything of value.

When asked by another attendee about the cryptocurrency craze, Buffett admits that these digitalized coins will "come to bad endings". Besides the speculative nature of ICOs, Gates also appears to be on board with the criticism of Bitcoin as dependent on the "Greater Fool" theory. Many Wall Street big times, such as Jamie Dimon, the CEO of JPMorgan Chase dismiss cryptocurrencies as they are not traditional and see no room for them, but Bill Gates is surprising.

The report added that the plan has "not been finalized and the project could still fall apart", but the mere fact that it is even being considered adds to growing mainstream acceptance of bitcoin as an asset class that has a legitimate goal for investment.

Of course, if Gates really wanted to short bitcoin, he has a variety of options. After the shares collapsed about a third of their value, they started bouncing back and Buffett immediately sold his shares thus earning a small profit. Interestingly enough, some of the more vocal detractors of Bitcoin include some of the richest men in the world.

Bears believe Buffett's comments are worthy of consideration.

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