Cryptocurrencies, given their cryptic nature and the lack of awareness around them, often inspire stark opposite responses around the world. While some like the CEO of Grayscale hail them as the “store-of-value for our digital age” others like the Bank of England question their very reliability and believe that they are too volatile to be a stable store of value.
A renowned member of the league of cryptocurrency-skeptics is business mogul Warren Buffett who never shies away from expressing his distrust towards Bitcoin and other cryptocurrencies. According to a CNBC report, the Berkshire Hathaway CEO while participating at a press meet in Omaha, Nebraska drew an analogy between Bitcoin and a “seashell” to delineate that the coin lacked a real value. He stated:
“It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me.”
“Bitcoin, A Gambling Device,” says Buffett
Buffett’s statement came before the commencement of the Berkshire Hathaway Annual Shareholders’ Meet and is not the first of his deriding remarks on Bitcoin. He had expressed similar views last year when he had characterized the coin as “probably rat poison squared.”
Known for his shrewd investment tactics, Buffett believes that Bitcoin is nothing but a speculative asset and the buzz around it is reminiscent of the scenes of the casinos in Las Vegas. As per him, as long as people are willing to risk their life savings wagering, anyone can make a profit.
Buffett’s Support for Blockchain
However, his snide remarks are exclusive for Bitcoin, and he sees blockchain tech in a different light altogether. Realizing its potential Buffett stated:
“Blockchain…is very big, but it didn’t need bitcoin. J.P. Morgan of course came out with their own cryptocurrency.”
Supporters of Bitcoin
Interestingly, Chamath Palihapitiya, the CEO of venture capital firm Social Capital, who has long followed the work of Buffett has chosen to disagree with him. He believes Buffett’s stand on cryptocurrencies is too intransigent, which restricts him from seeing the true potential of the innovation.
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