Legendary investor and CEO of Berkshire Hathaway Warren Buffett has been a long-time bear on Bitcoin, using strong messages to tell investors that they will lose a great deal of money by sticking with the digital currency. For example, “poison squared,” an expression he used to describe Bitcoin in interview with CNBC last Saturday.
That was certainly enough to stall the digital currency’s recent rally toward the $10,000-mark, and sent it in the opposite direction towards the $9,000-mark. Other major cryptocurrencies followed suit.
While it’s hard for everyone to debate Buffett, some cryptocurrency experts think that he’s wrong on his assessment of Bitcoin. 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.”
Marble points to the strong performance of Bitcoin vis-à-vis Berkshire Hathaway over the last three years. “For the record, if you had invested in Berkshire Hathaway stock three years ago, you would be sitting on a 30% profit, whereas had you invested in Bitcoin in three years ago, you would have done 100 times better literally.”
And he makes a stark 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 cryptocurrency expert that takes issue 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.”
Daniel Worsley, COO 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!”