A lot of criticism has surrounded bitcoin since its creation and once again Billionaire entrepreneur Warren Buffett has doubled his criticism on Bitcoin. Buffett had earlier called bitcoin a “probably rat poison squared,” at the annual Berkshire Hathaway shareholder meeting in 2018 were he declared his stance on digital coins.
Now he is vehemently declaring that he sees “no unique value” in Bitcoin. During an interview with CNBC, Buffett renewed his antagonism of bitcoin.
He declares that it is delusional and he feels sorry for those who think that cryptocurrency will have a positive influence in their life.
Bitcoin (BTC) Holds No Benefit!!!
The Berkshire Hathaway CEO claims that although bitcoin has some benefits and potentials such as the blockchain technology, however, to him, the feasibility of it succeeding was thin. He holds on to factors such as the fact that bitcoin isn’t real and “it attracts charlatans.”
Buffett’s claims may seem right considering the fact that Bitcoin has lost more than half its value since its last All Time High (ATH) in December. The cryptocurrency moved from $20,000 in 2017 to $3784 as at the time of writing. The volatility of cryptocurrency does not give a credibility to the cryptosphere and leaves it open to attacks from critics like Buffet.
Other Bitcoin (BTC) Sceptics
Asides Buffett, other top business leaders who have shown scepticism about Bitcoin includes Bill Gates,Ray Dalio and Howard Marks, Nouriel Roubini, Roubini Global Economics Chairman,Robert Shiller, Nobel Prize-winning professor of economics, and J.P. Morgan CEO Jamie Dimon. Even Jack Ma had at a time express scepticism over cryptocurrency saying it could be a bubble in 2018.
A Change of Heart From JP Morgan
However, it would seem that the walls some of these sceptics have built around their hearts towards bitcoin is slowly melting. Earlier this month, J.P. Morgan became launched its own U.S backed cryptocurrency.
Only a tiny fraction of the JPM coin will transmitted using the cryptocurrency initially, however, the trial JP Morgan has ventured into represents the very first real-world use of digital currency by a major bank in the U.S.
However a lot of tongues have started wagging and Dimon and his managers stand on the fact that they have consistently said that if the blockchain and digital currencies could be regulated, they hold promise.
Asides JP Morgan, social media giant Facebook had started developing a means to transfer bitcoin via WhatsApp last year. This action was taken after Facebook placed a ban on cryptocurrency and ICO related ads claiming that they were deceptive.
However, this month, Facebook took its blockchain interest further by acquiring ChainSpace and may likely be exploring its own cryptocurrency which will be a stablecoin pegged on the dollar.
Despite Warren Buffett’s reassertion of his scepticism of cryptocurrency, his statements appear ill-informed and vague. Considering that he is one of the most influential men in the finance world, his criticisms can affect the market creating FUD.
However, we are keeping our fingers crossed to see if he will have a change of mind about being left behind like Dimon and his team did.
Unbiased journalism is our major focus but its costs a lot of money. However, it is the only means to introduce sanity to the crypto space.