Published
5 years ago on
August 22, 2018
“Would rather invest in companies or assets that are able to produce rising returns that, when compounded, can offer significant wealth creation over an extended period of time. In contrast, Bitcoin appears to lack productivity, as well as real-world usage potential. For example, it is unlikely to ever replace a traditional currency, since its supply is set to be limited over the coming years. It also lacks the infrastructure required to become a substitute for a traditional currency, while regulatory concerns mean that its price may come under pressure at times if lawmakers decide to clamp down on its usage.â€See more for yourself, here. Indeed, when investors feel like they don’t want to pay more for Bitcoin than the last person, then the price will stagnate, but let’s remember that Bitcoin is more than just a coin, it’s a technology that has many other use values. Therefore, people will always want to invest in it and naturally with that, will come a rising price. Though Buffett could be right in his views about Bitcoin as a traditional currency, for now at least. Should we take this as a warning? No, not really. Whilst Buffett has a solid opinion, he’s not always going to be right. Nobody can predict the future for Bitcoin or cryptocurrency in general and therefore his view that it will become obsolete is nothing more than a prediction based on relevant experience. Bitcoin isn’t just going to drop off the face of the earth. If it fails, we’ll see a warning and we’ll be able to back out, although as you know, it can’t fail. Bitcoin is here for some time, whether Buffett likes it or not.
