Warren Buffett needs to accept cryptocurrencies are here to stay
Warren Buffett’s comments on cryptocurrencies at the Berkshire Hathaway annual meeting at the weekend show he needs to be educated on what is, in my opinion, the future of money.
Mr Buffett said: “Cryptocurrencies will come to a bad ending”. However, at the same time, Bitcoin has added $2,563.48 to its value in the last month, marking a price hike of 37.9 per cent.
Indeed, as I was quoted today by The Daily Express, CNN, Wall Street Journal’s Market Watch, Value Walk and Arabian Gazette, amongst other media, I wasn’t in the least surprised at Mr Buffett’s critical cryptocurrency comments, nor those of his business partner, Charlie Munger. They have both been repeatedly disparaging in regard to digital currencies.
Nevertheless, it amazes me that two such successful investors fail to see the fundamental value of cryptocurrency.
Do they honestly not think there is a place for cryptocurrencies in this ever-more globalised, fintech-driven world?
Can they not see that some of the world’s biggest technology firms and banking groups are investing in and using cryptocurrencies?
Can Mr Buffett and Mr Munger not see governments, central banks and financial regulators around the world identifying the necessity for regulations to be put in place as digital currencies are becoming more and more mainstream?
The fact the answer to all of the above is no, is highly baffling to me.
There’s no denying that Warren Buffet is one of the best investors we’ve ever seen. However, he represents the old guard of money.
By his own admission, Mr Buffett does not understand cryptocurrencies. He said to CNBC: ‘I get into enough trouble with the things I think I know something about. Why in the world should I take a long or short position in something I don’t know about?’
His latest remarks show his lack of understanding in regard to digital currencies, and how perhaps he needs to learn about what is likely to be the future of money.
I would urge financial traditionalists, such as Mr Buffett, who seem to be solely motivated by the old, centralised system of money, to open their minds to digital currencies.
Whether they choose to accept it or not, cryptocurrencies are here and they’re here to stay.