One of the greatest investors of all time, Warren Buffet, has now mentioned several times that Bitcoin is a “bubble”, an asset that does not produce any long-term value. The “Oracle of Omaha” does not seem to be very optimistic about the future and intrinsic value of Bitcoin.
Buffet has warned multiple times that the situation right now is very similar to a “real bubble”. In addition to his skepticism over Bitcoin, Buffet is also skeptic about ICOs, or initial coin offerings, an alternative way for companies to fund themselves. This type of crowdfunding will enable supporters to get tokens that can represent a variety of services and products. For example, some companies have already launched White Papers on the MilkCoin and the WaterToken.
According to CryptoCoinNews, Buffett commented on the troublesome fact that ICOs have raised around $3.2 billion in 2017 so far. He mentioned:
“People get excited from big price movements, and Wall Street accommodates”.
The mere fact that digital currencies are used for efficiency and for transfer of money in an unconventional way does not mean that their value is long-term.
As many argue about the true value of digital currencies and Bitcoin, in particular, one thing is sure – the underlying technology behind Bitcoin works. Blockchain has been employed in a series of industries, from healthcare to agriculture to real estate.