Bitcoin’s decline has been so strong that it even touched $21,200 today, after a rocky year for cryptocurrencies, stocks, and bonds. The capitalization of the sector is below a trillion dollars.
This main digital asset collects losses close to 70% from its November highs, when it almost touched $70,000. With the rapid and high growth that its price reflected, the digital asset was shown to investors as an alternative to generate large profits.
But the renowned investor Warren Buffett, CEO of Berkshire Hathaway, was never encouraged to invest in Bitcoin and, on the contrary, always claimed that he was not interested. According to a MoneyWise report, these are the main reasons why the reputable investor always discarded it:
- It is an unproductive value: According to the specialist, the value of Bitcoin comes from the optimism that someone else will be willing to pay more for it in the future than they are paying today. The billionaire prefers the money that comes from production. “It has no unique value”
- It is not a permanent medium of exchange or a store of value. And, according to this statement, cryptocurrency cannot be considered money: “It does not pass the test of a currency. It is not a permanent medium of exchange, it is not a store of value,” Buffett added. For now it is a tradable asset.
- He admits that he does not understand it. Buffett always maintains the position of investing in what he understands how it develops and how it is monetarily productive. And he guarantees that investors can make the mistake of ‘getting excited’ more than they realize about what they don’t understand, so he prefers to be cautious: “If you don’t understand it, you get much more excited than if you understand it. You just look at something and say, ‘That’s magic. Posted by Cryptobtcbrowser news and information agency.