Billionaire investor Warren Buffett has claimed that the market for the leading virtual currency Bitcoin is already in bubble territory. He also issued a criticism of the proposals for applying a value to the cryptocurrency.
Based on a report by MarketWatch, Buffett presented his views on Bitcoin and the cryptocurrency market during an annual question-and-answer session in Omaha, Nebraska in early October 2017. During his remarks, Buffett claimed that Bitcoin is a “real bubble.”
“People get excited from big price movements, and Wall Street accommodates. You can’t value Bitcoin because it’s not a value-producing asset.”
Performance of Bitcoin in the market
Bitcoin sustained its phenomenal performance after fluctuating at about $4,300 in early October. Bitcoin price has jumped to over $6,100 on Oct. 20.
Meanwhile, the negative view of Buffett on Bitcoin is not surprising as the well-known investor has already expressed such comments in the past. In 2014, the billionaire advised that investors should keep away from Bitcoin because the cryptocurrency is “basically a mirage.”
Other opinions on Bitcoin and the cryptocurrency market
Aside from Buffett, other virtual currency market observers have also issued their opinions on the latest developments in the market. In his comment, Prince Al-Waleed bin Talal of Saudi Arabia has claimed that he does not believe in Bitcoin completely and expects the digital currency to fail.
“It doesn’t make sense. This thing is not regulated. It’s not under control. It’s not under the supervision [of] any federal – elect – United States Federal Reserve or any other central bank. I don’t believe in this whole thing at all. I think it’s going to implode.”
However, in his new blog post, New York University’s “Dean of Valuation,” Aswath Damodaran, asserted that Bitcoin is a true currency and not a fraud.