5 Ways to Increase Acceptability of Cryptocurrency: From Skepticism to Mainstream Adoption
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2022-05-02 | Selina Mathew
Warren Buffett, CEO of Berkshire Hathaway (NYSE: BRK.A), has repeated his opposition to Bitcoin (BTC), claiming that it has no inherent value and hence cannot be invested in.
Incidentally, the main digital currency was priced at $9,500 when Buffett first characterized to it as "rat poison" on May 5, 2018, all through the Berkshire Hathaway 2018 annual shareholder meeting. BTC's worth has currently increased by 308.56 percent, with the price of Bitcoin trading at $38,814, despite Buffett's declaration that he would not buy all of it for $25.
Buffett emphasized Bitcoin's lack of concrete value during the Berkshire Hathaway Annual Shareholder Meeting on April 20 by noting that businesses including agriculture as well as real estate, in comparison to Bitcoin, generate larger tangible returns.
He highlighted that even if he were offered the lowest feasible price for all of his Bitcoin, he would still sell it owing to the asset's absence of utility.
Nevertheless, Charlie Munger, Berkshire's vice chairman and long-time Buffett colleague, stated throughout the 2018 meeting that cryptocurrency trading is "simply dementia."
For years, investors have been baffled regarding how to value bitcoin, in part because it may serve a multitude of functions. It has gained traction as an investment asset in Western nations, particularly in the last year while interest rates, as well as inflation, have both risen dramatically. In other regions, many people continue to feel it holds enormous promise as a digital money alternative.
Following Buffett and Munger's latest digs, Michael Saylor, CEO of Microstrategy, stated that the ongoing attacks on Bitcoin will serve as a marketing strategy for the asset.
Regardless of the reality that Berkshire Hathaway's leadership has discounted Bitcoin's prospects, the business has recently invested $1 billion in Nubank. The Brazilian bank is a pro-crypto digital institution that offers products such as the Bitcoin ETF through its investment arm.
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