Home / Bitcoin Price Predictions / Investors Shouldn’t Worry About Warren Buffett’s Stance on Bitcoin
Investors Shouldn't Worry About Warren Buffett's Stance on Bitcoin

Investors Shouldn’t Worry About Warren Buffett’s Stance on Bitcoin

flickr.com/Sienna L

Warren Buffett on Bitcoin Is the Wrong Source to Seek Out 

With Bitcoin (BTC) and cryptocurrencies in general being by far one of the hottest trades going in 2017, everyone has an opinion about this fascinating new industry. Many are positive. Many are also pretty negative. You have all sorts of famous investors, banking executives, financial analysts, and pretty much everyone and their grandmother adding their two cents to the money pile that is Bitcoin commentary.

But that doesn’t mean that all that commentary is equally valuable. Warren Buffett on Bitcoin, for instance, involves one of the most well-known investors in the world commenting on the hottest investment of 2017, so naturally, it has appeal from a media angle. But that doesn’t necessarily mean that everyone should hew so closely to Buffett’s words.

The Warren Buffett Bitcoin investments stance is basically one of doubt and caution.

“Stay away from it. It’s a mirage basically. It’s a method of transmitting money. It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?” Buffett said on CNBC in 2014.

“I hope bitcoin becomes a better way to do it. But you can replicate it a bunch of different ways. The idea that it [bitcoin] has some huge intrinsic value is just a joke in my view.” (Source: “Bitcoin up sevenfold since Warren Buffett warned digital currency was a ‘mirage’,” CNBC, September 7, 2017.)

Those are some strong words straight from the Oracle of Omaha himself. But does that mean that investors ought to listen to Buffett and steer clear of Bitcoin? In my opinion, that’s not necessarily the right move.

The thing about Warren Buffett on Bitcoin is that you’re asking a guy who’s great at basketball to judge a figure-skating contest. Bitcoin is so different than the usual Warren Buffett stock investments that it makes sense as to why he would be wary of BTC. It simply isn’t in his wheelhouse.

Even by taking a cursory glance at Berkshire Hathaway Inc. (NYSE:BRK.A),  you’ll find that a lot of the Warren Buffett stock investments are…traditional, to say the least. That’s by no means a criticism of one of the greatest all-time investors. Rather, it’s an explanation as to why Warren Buffett on Bitcoin isn’t the best source to seek.

Among Berkshire Hathaway’s portfolio, you’ll find a lot of banks, retailers, airline companies, food and beverage companies, and some other titans of industry, but what you won’t find is a big presence in tech. Aside from Apple Inc. (NASDAQ:AAPL), Buffett doesn’t seem particularly interested in grabbing tech stocks. And that’s what Bitcoin is at the moment—a tech proposition that is undergoing a long and very profitable proof-of-concept stage. (Source: “Berkshire Hathaway Portfolio Tracker,” CNBC, June 30, 2017.)

Because at the moment, BTC isn’t exactly accepted everywhere, as the Visa card commercials go. You couldn’t pay in Bitcoin at your local grocer, for example, or probably even your local chain store. The fact is that Bitcoin is still being slowly integrated and is prized as much for its potential and the tech behind it (blockchain) as it is for the coin as currency.

Also ReadBitcoin vs Ethereum: The Best Digital Currencies for 2017

So when you see a Warren Buffett Bitcoin investments critique, bear in mind that Buffett, for all his many qualities, is not exactly known as a tech guru.

And that goes for a whole lot of other billionaires, investing whizzes, and business execs who have taken a hardline negative stance on Bitcoin price predictions. These men and women are all successful in their own right and very intelligent people, but with BTC, we’re experiencing something totally new here that includes potentially industry-defining technology and a potentially limitless future in terms of applications. So anyone who claims to know exactly where BTC will end up is at least taking a few liberties. Or at least, is being lax with the definition of the word “exactly.”

Bitcoin Price Predictions 

With all that out of the way, what can we reasonably expect from Bitcoin going forward?

bitcoin price predictionLooking at the Bitcoin price chart, we see that BTC has suffered a bit of a tumble lately. That was due to the China ICO block, where the country has banned ICOs within its borders. Obviously, China essentially shutting itself out from the cryptocurrency market is bad news for cryptocurrencies. Having said that, this is not surprising given China’s protectionist monetary policies that strongly favor strict currency control, with very prohibitive laws in place meant to prevent the flight of wealth from the country.

Bitcoin and other cryptocurrencies offered a way for people to get their money out, so China is, of course, looking to crack down on those folks. Still, surprising or not, the move hurt the market and impacted the Bitcoin price.

I do believe that BTC is more than up to the task of recovery. Bitcoin is still flirting with $4,000 at the moment, but I think it’s reasonable to expect that the currency will pass that threshold by the end of the month, and by October at the latest.

The next major milestone for BTC is getting to $4,500 and staying there, without major news derailing it.

Analyst Take: 

To put a final point on it, don’t believe everything you hear right off the bat. Especially when it comes to Bitcoin prices, take your time and come to your own conclusions. All these experts chiming in are ultimately just opinions. Well-respected opinions, but opinions nonetheless. Warren Buffett is an investment genius. But Warren Buffett on Bitcoin is just another voice in the chorus.

The cryptocurrency market cap of Bitcoin continues to remain strong, interest in the coin is growing, and BTC has managed to withstand multiple setbacks and still be one of the best investments of 2017.

Oh, and one more thing: BTC has grown sevenfold since the Warren Buffett Bitcoin investments talk where he called it a mirage. Whether you think he’s right in the long-term or not, what’s for certain is this: Some people who didn’t listen to Warren Buffett in 2014 are now very, very rich.

Source link

Check Also

Bitcoin Up After CME Futures Launch – The Merkle

Bitcoin Up After CME Futures Launch – The Merkle

The primary consensus all by the Bitcoin neighborhood in anticipation of the launch of Bitcoin …

  • Along with almost everything which seems to be developing within this subject matter, all your opinions are actually rather exciting. Even so, I am sorry, because I do not give credence to your whole plan, all be it exciting none the less. It looks to everyone that your comments are actually not completely justified and in fact you are yourself not wholly confident of the argument. In any event I did appreciate reading through it.

  • I felt wonderful to read this info and I feel you are 100 right. Let me know in the event that you’re curious about bluestacks free download for pc, that’s my principal competency. I really hope to hear from you soon enough, bye for now!

  • Hey, I’m so thrilled I discovered your site, I actually encountered you by accident, while I was researching on Aol for personal injury lawyer. Regardless I am here now and would just enjoy to say thanks for a tremendous post and the all round thrilling blog (I too love the design), I do not have the time to browse it entirely at the moment though I have book-marked it and even added your RSS feed, so once I have time I’ll be returning to look over much more. Make sure you do keep up the amazing work.

  • I’m truly enjoying the theme/design of your site. Do you encounter any web browser interface issues? A lot of the website readers have complained about my facetime app for android site not operating properly in Internet Explorer yet appears wonderful in Chrome. Have you got any kind of tips to help correct this matter?

  • Hi there could you let me know which platform you’re dealing with? I am looking to get started on my blog on framaroot in the future although I’m having a hard time making a choice.

  • I truly feel this website wants far more consideration. I’ll likely be once more to read far more, thanks for that information.

  • Howdy can you inform me which platform you’re working with? I am seeking to start off my own personal site on omega xl tablets soon yet I’m having trouble making the decision.

  • You are completely correct, I’d like to know new info on this issue! I’m also curious about how to trace a phone number since I think it truly is quite cool lately. Keep doing this!

  • Thank you for the auspicious writeup. It in fact was a
    amusement account it. Look advanced to more added agreeable from you!
    By the way, how can we communicate?