Warren Buffet Says Bitcoin is in ‘Bubble’ Territory

Warren Buffet

Warren Buffet, the billionaire investor, has claimed that the leading virtual currency Bitcoin’s market is already in bubble territory. He also criticised the proposals for applying a value to the cryptocurrency.

MarketWatch reported that Buffet presented his views on the cryptocurrency market and Bitcoin while he was in an annual question-and-answer session held in Omaha, Nebraska earlier this month. Buffet claimed in his remarks that Bitcoin is a “real bubble.

“People get excited from big price movements, and Wall Street accommodates. You can’t value Bitcoin because it’s not a value-producing asset.”

Market Performance of Bitcoin

Bitcoin was able to sustain its performance after fluctuating at about $4,300 in early October, and it jumped to over $6,100 on October 20th.

Well, the remarks of the billionaire investor Buffet are not so surprising as he already did something like this back in 2014. He said to stay away from Bitcoin because, in his opinion, cryptocurrency is “basically a mirage.”

Other Opinions on Cryptocurrency

Other than Buffet, some other people have also expressed their opinions about Bitcoin and cryptocurrency. Prince Al-Waleed bin Talal of Saudi Arabia claimed that he doesn’t believe in Bitcoin completely and expects the digital currency to fail.

“It doesn’t make sense. This thing is not regulated. It’s not under control. It’s not under the supervision [of] any federal – elect – United States Federal Reserve or any other central bank. I don’t believe in this whole thing at all. I think it’s going to implode.”

Some people talked in favour of Bitcoin too. Aswath Damodaran, Dean of Valuation at New York University said in a blog post that Bitcoin is a true currency, not a fraud.