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Warren Buffett and Bill Gates Reject Cryptocurrencies

Warren Buffett and Bill Gates

The bull-run in cryptocurrency market has ended after Warren Buffett and Bill Gates completely rejected cryptocurrency in a show on CNBC. The world’s wealthiest investors and business icons are showing their concerns over the significant growth in Bitcoin (BTC) and other digital currency prices.

They have announced that they will never invest in the cryptocurrency markets despite the increasing adaptations for it from Central Banks and global regulators.

Bears say both investors have raised genuine questions. Warren Buffett and Bill Gates are claiming that the cryptocurrency markets are colliding with the basics of investing. They are actually pointing towards the concept of the real value of assets.

Warren Buffett and Bill Gates Reject Cryptocurrencies

The Berkshire Hathaway Chairman told CNBC on Monday that the “asset itself is creating nothing.”

Further elaborating his claim, he said, “When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along.”

Bears believe Buffett’s comments are worthy of consideration. Cryptocurrency traders are buying coins with an expectation that market speculations will allow them to sell these coins to another person at the higher price. Traders aren’t giving any importance to the concept of fair value when it comes to investing in digital currencies.

Bitcoin and other digital currencies aren’t backed by any asset – like Gold or the Dollar. These digital currencies are moving on speculations of higher adaptations and bullish bets, while their cost of production is much lower than their current price.

Bill Gates – A greater fool theory

Bill Gates, Microsoft Co-founder, also was bearish about cryptocurrency when he spoke in the same interview on Monday. Bill Gates said, “He would like to bet against bitcoin if he could.”

Considering the cryptocurrency markets a greater fool theory he says: As an asset class, you’re not producing anything, and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” Gates said. “I would short it if there was an easy way to do it.”

Featured Image: Twitter

  • D Harlo

    Dumbest article ever…

    Ever heard of futures? Paper gold? Paper oil? Etc…

    Go check how much is invested in the gold futures market and tell me how they plan on “backing” that much paper gold.

    These articles featuring these two dip $hits is getting annoying. The end of the “bull” run in crypto had nothing to do with any of this. It’s just natural market fluctuation. Profit taking. World events. If anything every time these two talk about crypto the entire community either laughs or moans

  • Chidambaram Manikandan

    Raised “Genuine Questions” & “Basis of Investing” – both these phrases are used inappropriately to bring in distrust of common and simple people, Do they mean the basic paper Dollar and Gold (As a metal like Iron by fundamental) has value..? “then investors belief in…” Another investor will buy from him for more…?

    This Article made with an intention to mislead the public… No base or logic…

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