Warren Buffett: Bitcoin is a bubble, as it doesn’t produce value

Warren Buffett, CEO of Berkshire Hathaway and once the richest man on the planet, has lately met with students in Nebraska at a Q&A session. Among other issues mentioned at this session was Bitcoin – and it’s interesting to know what one of the most powerful market figures of the word thinks about this cryptocurrency.

According to MarketWatch, Buffett stated that Bitcoin is not a value-producing asset and there is no telling how far its price would go. It is “a real bubble in that sort of thing”, Mr. Buffett concluded. There is a completely unjustified hype around initial coin offerings, the entrepreneur believes, and described this as a typical market sentiment when “people get excited from big price movements, and Wall Street accommodates”.

While conservative entrepreneurs and fiat money market players are sure that Bitcoin would eventually fall and nothing more than yet another bubble, those businessmen who comprehend the cryptocurrency structure better are usually supporting the market and tell it’s promising. Sometimes, as in the case with Peter Thiel, the view changes after time.