Big investment firm: “Warren Buffett is wrong about cryptocurrencies”

Big investment firm:

Image source: Press photo / Shutterstock

Christian Ploog

christian.ploog@trijo.co

During the past year, many respected people in the financial industry have been negative towards bitcoin and cryptocurrencies. Now, a counter attack comes from a director at the investment firm GP Bullhound.

One of the people that have been negative towards bitcoin is the American investment bank J.P. Morgan Chase CEO Jamie Dimon. He called bitcoin a fraud, although he later regretted that. Another one is Warren Buffett.

Already in 2014 Buffett called bitcoin a mirage and told people to “stay away from it”.

“The idea that it has some huge intrinsic value is just a joke in my view”, Buffett said on CNBC.

“Stay away from it”

His negative attitude towards crypto has continued. During spring this year, for example, he said that investing in cryptocurrencies are not worth calling “investing”, but rather gambling. And in October last year, Buffett warned that “you can’t value bitcoin because it’s not a value-producing asset”.

Now, a counter attack comes from Sebastian Markowsky, director at the investment firm GP Bullhound. Markowsky just thinks that Buffett is utterly wrong in his analysis.

He finds, contrary to Buffett, that bitcoin certainly has value.

“By using decentralized technology and cryptography, and combining the two, bitcoin has managed to create a uniquely identifiable digital object”, says Sebastian Markowsky in an interview with Trijo News.

Why it has value

Sebastian Markowsky, who among other things also is very bullish about ethereum, compares bitcoin to the internet to prove that the cryptocurrency has value.

“If you think of internet before that, it was largely an assembly of copies, because if you would send me a PDF file and I would pay for the content, you would need to prove to me that you have deleted it and that I’m the only owner. That wasn’t really possible. But if you transfer bitcoin to me, you cannot create another one. It belongs to me. So that is why everyone speaks about the internet of value in this respect”, says Sebastian Markowsky.

“I don’t think a rational human being can realistically attribute zero value to what I just described”

According to Sebastian Markowsky, this very basic aspect alone actually shows that bitcoin eventually has a huge value.

“So if someone says it has no value, I think it’s probably easy to prove that this person may be wrong, because I don’t think a rational human being can realistically attribute zero value to what I just described. And that is why Warren Buffett is wrong about cryptocurrencies”.

Also, read about the report from GP Bullhound that predicts that the cryptocurrency markets are heading for a 90 percent correction within a year.

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