Warren Buffett Calls the Bitcoin a “Gamble”

Warren Buffett, the CEO of Berkshire Hathaway and one of the most influential figures in the investment field, criticized the bitcoin and the cryptocurrency market in a recent interview with Yahoo Finance. Buffett referred to the bitcoin as a “gamble” instead of as a general investment.

Buffett told Yahoo Finance that people who invest in cryptocurrencies are not investing in things that have produced other items. He feels that those who invest in them are just hoping that the next people who buy the cryptocurrency will pay more for it.

He did not say that the bitcoin is something that people should avoid. He feels that there is nothing wrong with people who want to invest in the currency. But even so, he feels that the risk involved with the currency field is too high and potentially tough to work with.

Buffett did not address the “hodl” trend in the currency market either. Although Buffett has a belief similar to what the “hodl” group has in that people should hold their investments for as long as possible. He has stated in the past that cryptocurrencies are too reliant on trading. That is, people often trade these currencies more often than what might be considered to be necessary.

Past Impacts

The words of Warren Buffett are often considered to be a gospel of sorts in the investment field. Many of Buffett’s statements on prior investment options have led to dramatic changes in the values of certain investments. This can be said for the bitcoin.

In 2014, Buffett referred to the bitcoin as a “mirage” and that it might be too much of a risk to get into. This did not impact the value of the currency as it was only good for a few hundred dollars at the time.

But in January, Buffett stated that the cryptocurrency field is too risky. He felt that the currency industry was going to reach a “bad ending” at some point. This was one of the big points that caused the currency market to drop in value at that time, reversing major gains that were found in the market. The bitcoin had been around $14,000 in value at the time and would eventually get to around half of that total. The value of the bitcoin has been gradually moving up and is near the $10,000 mark as of the end of April, but it has struggled to try to maintain a positive trend.

Buffett’s words this time around have not made much of an impact on the bitcoin’s value or the values of other currencies. The bitcoin has been hanging over the $9,000 mark in the past week and has seen a slight uptrend in recent time. The currency is not experiencing any dramatic rises in its value, but it is not going through any dramatic drops either.

No other major cryptocurrencies on the market have experienced any sizeable drops in their value in recent time either. The industry in general has been growing progressively with the total market cap of the industry being listed at around $430 billion.

 

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