Bitcoin is a real bubble.
This was stated by one of the most influential investors of the planet Warren Buffett, reports Marketwatch.
In the course of the conversation, the speech about bitcoin also came up.
And the impressive growth in the price and capitalization of the first billionaires’ crypto currency is not impressive.
“People get excited from the big price movements, and Wall Street accommodations,” he was quoted.
He also added that it is impossible to predict how high the bitcoin price can rise, because “this is a kind of a bubble in its own way.”
He told attendees:
“You can not value bitcoin because it’s not a value-producing asset.”
Recall, October 20, the price of the first crypto currency overcame the psychological mark of $ 6000, fixing its new historical maximum.
That Buffett would take a harsh stance toward bitcoin is unsurprising because in 2014, he advocated that investors stay away from bitcoin entirely.
“It’s a mirage basically,” he was said at the time.
However others have adopted a different idea. On Oct. 24, New York University’s Aswath Damodaran, argued that bitcoin is a true currency and not a fraud in a new blog post.