Warren Buffet’s Harsh Criticism of Bitcoin
Warren Buffet, legendary investor and multi-billionaire conveyed his criticism of Bitcoin and other cryptocurrencies in an exclusive CNBC interview. With a track record of over eighty years it’s safe to say that Warren Buffet is a voice worth listening to.
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Out of Touch
Is it possible that the legendary CEO of Berkshire Hathaway is simply out of touch with digital currencies and changing times? Although Warren Buffet has more than half a century of experience investing in companies such as Apple, Coca-Cola, and many others. The push towards decentralization has shed light on currencies that operate on blockchain, something completely foreign to many people including Warren Buffet. Which begs the question of whether we should listen to newly born tech magnates or old school investors. Especially when it comes to new fields that provide a mix of both technology and investing.
The main argument against Bitcoin that Warren Buffet pointed out, was that Bitcoin carries an inherent flaw… An investment in Bitcoin does not yield any tangible returns. This is exactly what separates Bitcoin from other investments in Warren Buffet’s portfolio. For instance investing in Coca-Cola means you’re investing in a company that produces a tangible good such as a can of soda. However an investment in Bitcoin means that you are simply buying a high tech “novelty” item that does not yield any physical goods. Whether or not this is enough to discredit Bitcoin as a worthwhile investment is up for debate.
Who is Right?
So how exactly do we know whose opinion is right? Ultimately that is a decision nobody can make but yourself. Cryptocurrencies are an entirely new game, and just because someone is an expert in one field does not guarantee the same expertise in an entirely new one such as cryptocurrency.
One More Thing
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