Bitcoin is not a Currency, Says Oracle of Omaha

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Bitcoin is not a Currency, Says Oracle of Omaha
Bitcoin is not a Currency, Says Oracle of Omaha

Bitcoin is not a Currency, Says Oracle of Omaha

Warren Buffet, often called the Oracle of Omaha for accurate predictions on the markets, says that Bitcoin is not a currency. This master venture capitalist who is in his early 80s and currently heading Berkshire Hathaway, believes that Bitcoin may not be in the world after two or three decades. When he says something, people must pay attention.

Though it was not an occasion where Buffet could have given his opinion on Bitcoin but given an opportunity when Mt. Gox, the biggest Bitcoin exchange has collapsed, it was opportune for him to say something about the digital currency. This time speaking to CNBC, Buffet touched on many issues, including Bitcoin.

Buffet, who is often called the ‘most successful investor of the 20th century’ admits that he is not so enthusiastic about the digital currency, as he said that it won’t be around in a decade or two. He says that in wartime it is much better to hold stocks rather than money and he cited his own example which he followed during the Second World War.

He was heard saying that American businesses are going to be worth more money. Dollars will be worth less, so that money won’t buy you quite as much, but you’ll be much better off owning productive assets over the next 50 years than you will be holding pieces of paper or, I’m not sure, Bitcoins.

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Despite Hurdles in Front, Bitcoin Moving Up and Up

Bitcoin has been receiving critical opinions from senators to economists to policy makers; however, it still makes the news. Nonetheless, despite the Mt. Gox collapse, the exchange rate of Bitcoin has gone up this week. It has yet to be seen whether Buffet will ever invest in Bitcoin which according to him is not a currency. ‘

He looks at Bitcoin with doubt when he says that he wouldn’t be surprised if it wasn’t around in the next 10-20 years. According to him Bitcoin is being priced off the dollar and that it is simply not a durable means of exchange. Earlier in similar statement Janet Yellen, the new head of the Fed, said that the US central bank has no authority to supervise or regulate Bitcoin.

She had then said that as Bitcoin is not a currency the Congress should look into legal options for overseeing this and other virtual currencies. There are several complications if Bitcoin is considered a currency and the governments are not looking into it to get into the complexities.

To contact the reporter of this story: Deepak Tiwari at deepak@forexminute.com