Cryptocurrency markets are still favoring the bulls stance despite Warren Buffett’s lack of confidence and criticism on the ever-emerging digital currency market. Bitcoin price (BTC) rose to the $9500 level on Sunday. Several altcoins are also reaching new highs this year. Indeed, EOS – the fifth largest coin, has attained its all-time high on Sunday trading.
The cryptocurrency markets are making small sideways movements after posting modest losses in early Monday trading. TRON (TRON) is among the most significant gainers while Bitcoin, Ethereum (ETH) and Ripple (XRP) are trading in a narrow range.
Source Image: coinmarketcap.com
EOS coin hit the all-time high of $23 on Sunday before losing some gains in today’s trading, amid trader profit taking. The coin currently hovers around $18.75.
But Why is Warren Buffett Unconvinced
Warren Buffett, the business magnate and investing icon, doesn’t have any confidence in cryptocurrency markets. He once again repeated his hard stance towards virtual currencies.
He said, “If you buy something like a farm, an apartment house, or an interest in a business… You can do that on a private basis… And it’s a perfectly satisfactory investment,” he said. “You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
Buffet believes it’s not investing, it’s gambling. The Buffet is a defensive style investor who looks at the fair value of the investment to find the value. The chairman of Berkshire Hathaway thinks Bitcoin and other cryptocurrencies don’t have any fair value to support their prices on crypto exchanges.
He claims traders are speculating on cryptocurrencies rather than investing. Warren Buffett’s argument is undoubtedly based on facts that traders can’t completely ignore. Bitcoin and other trading cryptocurrencies are moving on trader’s sentiments and market reports while their cost of production and the fair value is well below current market prices.
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