Warren Buffett has long been a trusted name in the world of investing. His words have long been a gospel of sorts for those who want to understand things relating to finances. But right now Warren Buffett is arguing that the bitcoin, one of the hottest investments on the market, might not be the best thing for people to get into.
Buffett made a remark at a question and answer session with business students in Omaha. He told the students that he has concerns about the bitcoin as it does not produce value. This comes as the bitcoin is not a physical currency or something that people could easily spend without going online.
Buffett’s words suggest that he is concerned about the bitcoin and how it works. As it is not tangible, it is difficult to figure out what the value of the bitcoin could be when compared with the American dollar. This comes in spite of how the bitcoin has been growing in value and has become such a hot investment for everyone to look into.
The words that Buffett is saying could go a long way towards giving people a clear idea of what might come about with the bitcoin. As one of the world’s wealthiest individuals, Warren Buffett has grown to become a popular figure who is heavily respected.
How High Can It Go?
Buffett also says that there is a real potential for the bitcoin to really go up in value and become stronger. He does not have any idea how high up the value of the coin could be.
But because there is no limit, he argues that the bitcoin could possibly become a bubble. This means the bitcoin could crash in value at any time. This is a fear that the investment could weaken and die off. The intensity of the bubble is uncertain at this point although it is a clear worry to look into in many forms.
Lack of Control
Buffett also says that he is worried about how the bitcoin is not regulated by any particular entity. These include entities like the United States Federal Reserve. Although he understands why the bitcoin is decentralized, he questions whether this would be a viable setup to use. This especially comes as the bitcoin is tough to figure out and review.
The fact that the bitcoin can be highly anonymous is a problem to Buffett as well. Buffett feels that there is a good possibility that the bitcoin could be used for many questionable purposes. The hidden nature of the bitcoin is especially a worry to him as there is a real potential for the bitcoin to change in value rather quickly.
This development about the bitcoin is an interesting point to look into. While many people often talk about investments, the words that Warren Buffett has to say about things are often heeded more than others. His worries about the bitcoin is something that could certainly be worth looking into when figuring out how well the bitcoin is run.
Hi Vladimir For some reason or other ive just never been able to get my head around Bitcoin. I’m with Warren, its going to get to a point were the bubble bursts. When the price was lower I could see it being used as a viable currency option, but now the price is going crazy everyone buying will just hang onto it for fear of losing money if the price goes up, therefore no goods will be bought using bitcoin. So there will come a time when everyone realises that damn we need to get rid of this . I… Read more »