Bitcoin had a few positive weeks, but this could all be about to change again, after the Berkshire Hathaway meeting, where some did not have very kind things to say about the number one cryptocurrency at all. One of these was Microsoft co-founder and Berkshire member Bill Gates.
The CEO of Berkshire Hathaway Warren Buffett has openly criticised Bitcoin, and other cryptocurrencies, and in recent months has said a number of negative things. One of the main problems that he has with the cryptocurrencies is that they are not productive assets – they are only valuable because investors are interested in them. He even went as far to say at the annual meeting that:
“Cryptocurrencies will come to bad endings.”
Bill Gates has now jumped on the same bandwagon, referring to them as ‘crazier, speculative things’. He said;
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment…[I would short Bitcoin] if there was an easy way to do it.”
Over the past few weeks, Bitcoin and other cryptocurrencies have actually performed really well over the past few weeks, but have fallen once again after these comments were released. Now, it is important to note that the market is simply taking a breather following a successful few weeks, but on the flip side, it could be that these comments have had a negative effect. At the beginning of this week, the top ten cryptocurrencies were in the red, and Bitcoin is down by three percent in just 24 hours.
The comments from Bill Gates are particularly surprising because he is so tech savvy, so we would expect him to see being fairly accepting of the big trends. Many Wall Street big times, such as Jamie Dimon, the CEO of JPMorgan Chase dismiss cryptocurrencies as they are not traditional and see no room for them, but Bill Gates is surprising.