Earlier in the first week of the month, ForexMinute reported that Warren Buffett, often called the Oracle of Omaha for accurate predictions on the markets, said that Bitcoin was not a currency. Now, he again has hit the digital currency and called it ‘a mirage’. His statement came in when this renowned investor and Berkshire Hathaway CEO Warren Buffett was continuing the debate on Bitcoin with CNBC.
Warran Buffett is a venture capitalist who is in his early 80s, according to some Bitcoin supporters is not in position to comment on Bitcoin. However, as he has been right quite often, his advice for investors cannot be rejected. When Mr. Buffett writes off Bitcoin and calls it a passing fad, investors need to consider his point of view and reject it on their own peril.
Dismissing Bitcoin, Buffett says that at least as an investment opportunity, Bitcoin is not a good asset and he is staying away from it. However, his rejection does not go far as he says that the underlying technology of Bitcoin as a payments network is astounding. He compared Bitcoin to checks and money orders as a “very effective” and “anonymous” way to transmit money.
“Bitcoin Does Not have Intrinsic Value, Saying It Has is a Joke” Says Warrant Buffet
According to Mr. Buffett, “It’s a very fast money order”. Thus, it looks, he is not entirely against the digital currency but he feels it is not a good investment option. What he seems against is that Bitcoin should not have an intrinsic value. He favors the role of Bitcoin wherein it can be used for transmitting money from one user to another.
Elaborating his point further, Mr. Buffett said that he hopes Bitcoin becomes a better way of transmitting money; however, the idea that it has intrinsic value is a joke. His statement is receiving angry voices from Bitcoin supporters who say that Warren Buffett often avoids technology company shares and his distaste to Bitcoin should be read from that perspective.
On the other hand, one section of Bitcoin supporters say that dismissing a critic like Warrant Buffett makes more bad than good to the future of the digital currency. Warrant Buffett’s opinions and views have been powerful tool for investors. In fact, investors in his company know that he understands what he is talking about.
To contact the reporter of this story: Deepak Tiwari at email@example.com