Warren Buffett, which is also known as the investment Guru, stated clearly that Bitcoin and cryptocurrency are like a rat poison squared. When we talk about Bitcoin or cryptocurrency, we will find out that this is the hottest things we can find today. Most people see it as the future, the future that can change the current business world. Cryptocurrency and Blockchain technology as its base is indeed promising many great things. The fairness and transparency, which we hardly see in the current business system, are available in the cryptocurrency system. However, the master has said that this hype won’t end with a good thing.
According to Mr. Buffett, cryptocurrency and Bitcoin that most people are crazed about right now are only giving nothing, but a shortage of currency. This will create an illusion that this currency is valuable. However, there is bubble effect behind this hype, which can blow anytime, soon or later. And when that happens, he said that there is only bad ending emerge.
More than that, Mr. Buffett also said that cryptocurrency doesn’t have significant value, compared to today’s currency. The invisibility of cryptocurrency maybe has become the main reason, why Mr. Buffett says it like that. With the current business and transaction system that strongly implemented on every aspect of human’s life; it’s difficult or almost impossible to change it with the system that is completely new, like cryptocurrency. The effort to apply this system also needs a huge resource. It will need to replace the whole facilities, tool, algorithm, and system that is currently working in motion, and that’s not something that can be done easily.
Although the value of cryptocurrency, especially Bitcoin has increased these days, the implementation of this currency into the business transaction is still difficult to do. In the end, the cryptocurrency will only become a collection item. It has age and sentimental value, but it can’t be used practically. Then, there is a chance that there will be a new innovation in the current business system, which can make the cryptocurrency fever cooled down, and make it forgettable, as that new innovation is much better and implementable to the current business system.
Mr. Buffett itself decided to not to get involve in cryptocurrency hype. His company, The Berkshire Hathaway, keep their position to stay away from this digital currency. With the experience and instinct that a Warren Buffett has, maybe we also should keep ourselves aware, when we want to mine or invest in cryptocurrency.