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Bitcoin Hit the Wall Called Buffett and Gates

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Bitcoin Hit the Wall Called Buffett and Gates

Bitcoin keep growing as one of the most popular and profitable investment for many people today. Although this currency was planned to be the replacement for the current banking system, it was changed into asset that many people try hard to collect as investment. The value of Bitcoin also shows why many people try really hard to invest in this asset. Currently, Bitcoin almost touch the $10,000 per 1 Bitcoin value. However, this cryptocurrency drop low to $9,188.66 on Monday, although on weekend last week, it touched the $9,900 level.

Although Bitcoin is unable to reach $10,000, compared to its position last month, this value level can be considered as good result. Last month, Bitcoin still move around $6,700. Basically, this cryptocurrency increase around 40%, which can be said one of massive increase for investment asset value. However, the drop and the failure of Bitcoin to hit the $10,000 level is caused by some factors, which is the criticism from famous figure in business and investment world, Warren Buffett.

The Berkshire Hathaway Chairman and CEO, Warren Buffett on the interview with CNBC, said Bitcoin is the non-productive assets. It creates nothing, said Mr. Buffett. He explain that invest on Bitcoin won’t give you any profit, because you only depend on the next person that think that this asset will value more than before. When the interest like this has been decreased, the investor will lose their money, which makes it high risk and not worth asset to put your money on. His opinion is also supported by Charlie Munger, one of Berkshire Chairman that said Bitcoin is just dementia.

Apparently, it’s not only Warren Buffett that loses his faith to the Bitcoin as one of investment asset. Bill Gates, the Co-founder of Microsoft also said the similar thing on CNBC interview. Gates said that Bitcoin isn’t worth to be said to be asset class for investment, as it doesn’t produce anything. That means you can’t expect its value to grow. He said that this is kind of investment that is included in “greater fool theory” type.

Although Wall Street was rumored to prepare the platform for trading Bitcoin, however it’s just speculation. There is also information that U.S. Securities and Exchange Commission and Commodity Futures Trading Commission that had meeting on Monday produced no positive result. Therefore, there is a chance that Bitcoin will still have problem to increase its value and become the real investment asset, at least in the near future.

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