Warren Buffett who is a Billionaire investor has said that the Bitcoin market has already reached its bubble size. He, however, criticized the talk of applying value to the cryptocurrency. According to a report by the Market watch, Buffett was giving his views on Bitcoins in Omaha. This was during the question and answer session about Bitcoins and other Cryptocurrencies.
Warren Buffett stated that Bitcoin was a “reality bubble.” This meat that it would soon collapse. He stated that “The reason why people don’t value Bitcoin is that it’s not a value-producing asset. People are always excited in bid price movements and were street accommodates.”
Bitcoin Performance in the Market
Bitcoin had a good market performance when it moved up at about $4,300 in early October. That price did not stay long since it jumped to over $6,100 on 20th October. The negative comments about Bitcoins did not surprise many. This is because the billionaire has had negative comments in the past. In fact, in 2014, he advised people to keep away from Bitcoins because they were a scam.
Bitcoin alternative and the general cryptocurrency market.
Apart from Buffett other observers of digital currency have had their opinion on the current trends in the market. The prince of Saudi Arabia Prince Al-Waleed bin Tala also expressed dissatisfaction in the Bitcoin business. The prince stated that he does not believe in Bitcoin and that he expects it to fail. According to him; “ Bitcoin does not make sense. Its also not regulated by anybody not even the central bank in the United States. It’s going to fail very soon.”
Apart from the negative comments Bitcoin and other currencies received positive feedback. Aswath Damodaran in his new post “Dean of Valuation” posted in the NewYork University he stated that Bitcoin is a not a fraud but a true currency.