On Saturday, May 5, Bitcoin reached $ 9,950, but later that day he began to move lower. It looked like it was around the same time that Warren Buffett and Charlie Munger made several statements at the shareholders’ meeting of Berkshire Hathaway, insulting the cryptocurrency. Bitcoin fell to about $ 9,600 on Saturday, and then to $ 9,350 on Sunday. On Monday, it fell to $ 9,250 with a small rebound to $ 9,350.
Last week, there was a particular bullish stream of information that helped Bitcoin move from $ 9,000 to a peak of $ 9,950 on Saturday. The announcement was attended by the chairman of the CFTC, Christopher Giancarlo, saying that bitcoin
“part currency, part security and part digital coin”
and that it may be better suited for a long-term buying and holding strategy versus a form of payment. He added that Bitcoin has aspects of a virtual asset, such as gold, only digital.
The meeting that spoiled the holiday
On Saturday, Warren Buffett and Charlie Munger, chairman and chief executive officer and vice chairman of Berkshire Hathaway, respectively, held an annual meeting of the company. Tens of thousands of people visited this important event for many investors, and thousands of people viewed the video of this meeting.
Buffett and Munger had previously expressed negative views regarding bitcoin and cryptocurrency. In particular, Buffett said:
“I can say almost with certainty that they will come to a bad ending”
and Munger described the digital currency as “noxious poison”. He added that bitcoin craze “totally asinine.” You really can understand what Munger feels from his comment: “I detested it the moment it was raised. It’s just disgusting.”
They confirmed their feelings on Saturday when Buffett said that bitcoin was “is probably rat poison squared.”
Monday on CNBC added Buffett: “The asset itself is creating nothing. When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along.” And Munger, in turn, added that bitcoin is “Worthless artificial gold.”
Accidentally or not, but according to the time of the speeches of Buffett and Munger entirely coincided with the drop in the price of bitcoin. But is it by chance?
Maybe Buffett was trying to short Bitcoin?
The chances that Buffett is 87 years old, and Munger who is 94 years old, will ever be invested in cryptocurrency is extremely low.
But on the other hand, we remember how Buffett for a long time avoided investing in technology companies.
BUT EVERYTHING CHANGED DUE TO A LARGE PURCHASE OF APPLE SHARES
Within just two years Apple has become the most significant investment of Berkshire.
It would be interesting to watch after a while as Buffett, also changing his attitude, investing in Bitcoin.
He is not right
Also, many cryptocurrency experts believe that they are mistaken in their assessments. Darren Marble, CEO of CrowdfundX, is one of them. “Although Warren Buffet has made the right call on many investments, he is dead wrong on Bitcoin, because he is totally clueless to the technology,” says Marble.
“How could someone who doesn’t use email possibly appreciate Bitcoin? They can’t”
And he makes a prediction: “Years from now, when the dust settles, Warren Buffett’s miss on Bitcoin will be the biggest miss of his career and will make his misses on Amazon and Google look forgivable.”
Daniel Rice, Chief Technology Officer of Sagewise, is another expert in the field of cryptocurrency, which also disagrees with Mr. Buffett. “We disagree with Warren Buffet that Bitcoin is a zero-sum game,” says Rice. “While it’s true that Bitcoin acts differently from more traditional investments, this is not a negative in our view. Too often traditional investors forget Bitcoin is actually a technology infrastructure.”
It is necessary to appreciate revolutionary technologies
Daniel Worsley, the chief operating officer of LocalCoinSwap, agrees. “Bitcoin has fueled huge amounts of innovation over the last few years. Its revolutionary blockchain technologies have shown that there are alternatives to many industries and assets,” says Worsley.
“Money, Insurance, contracts, computing power and even voting are now more fair and efficient all thanks to Bitcoin and the blockchain”
“Warren Buffet has in the past quoted that you should ‘invest in what you know.’ That is one piece of advice that we should all definitely follow!”
Will you do it?