We have to look at the success of traditional investors with the respect that many of them deserve. Some people have built a life on wise placed investments and therefore, when they speak, we should heed their warnings. The likes of Warren Buffett, one of the most prolific investors of all time may seem a little old school now in his views surrounding Bitcoin, but he’s always worth listening to, since he is considered to be one of the best in the field.A lot of his scepticism does step from an unwillingness to embrace the new, with crypto still up and coming then perhaps he believes something bigger will come and knock Bitcoin out of the park. Or, maybe he just thinks its a bad idea altogether, which seems likely for someone who has made his riches through FIAT. What does Buffett believe?In essence, Buffett believes that Bitcoin is not productive. It has no use and it’ll fall flat soon enough. Buffett believes that the only reason Bitcoin racks up value is because the next person always wants to pay more for it, however, once this sort of investment stops, it’ll be worthless. According to The Motley Fool, Buffett:
“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.”
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.