During a conference in which investors posed questions to Warren Buffett and his associate, Charlie Munger, Mr. Buffett pulled no punches when speaking about cryptocurrencies. He compared digital coins to stamps. One could have a collection of them that are value immensely on an individual level, but it has no objective value.
He also doesn’t believe that cryptocurrencies have any real commercial use as an exchange of value.
“The cheque is a wonderful idea, but it does not make the cheque intrinsically valuable,” Buffett said.
His outlook on cryptocurrencies appears to show that he trusts fiat more, despite the fact that its value is drawn in the same manner as a digital coin’s. If people trust in the value of something, that qualifies it as a medium of exchange.
Warren Buffett’s predictions about the cryptocurrency market aren’t very optimistic, either.
“Cryptocurrencies will come to a bad ending because nothing is being produced in the way of value from an asset. There is also a problem that it draws in a lot of charlatans who are trying to create exchanges or whatever it may be. It is something where people of less than stellar character see an opportunity to clip people who are trying to get rich because their neighbors are getting rich buying this stuff that neither of them understands. It will come to a bad end,” he concluded.
Munger agreed with Buffett, adding that cryptocurrency trading “is just dementia” and calling it “disgusting.”
It’s no surprise that the pair share a disdain for digital currencies when we consider what they’ve said about them in the past.Munger previously used the word “disgusting” when describing the market back in February, also comparing Bitcoin to a “noxious poison.”
This article appeared first on Cryptovest
