Prices of Bitcoin slumped on Monday after the criticism from the world’s known investment billionaires. The digital currency was down to $9,188.66 on Monday after hitting above $9,900 during the weekend. Bitcoin has recorded 40% recovery after going as low as 6,700 last month but it has been unable to jump the $10,000.
Berkshire Hathaway CEO Buffett has been very critical of the cryptocurrency industry for many years. In many cases he has likened cryptocurrency to gold noting that they are both speculative and don’t offer any earnings like stocks.
Bitcoin as a rat poison
Before his company’s annual meeting which was held on Saturday, Buffett said that bitcoin was “probably rat poison squared. In his comments during the meeting, Buffett indicated that one can buy bitcoin but you will never get any value from it.
Buffett said that people who buy bitcoin do so on purely speculative grounds. They buy hoping another person will come along to pay for it. He adds that they become even more excited when a person finally comes along and buy the assets.
Buffett went on to call bitcoin “probably rat poison squared. Charlie Munger , the chairman of Berkshire,who was also speaking during the meeting said that cryptocurrencies is “just dementia.”
These comments did not go well with Bitcoin bulls. At first in 2014, Buffett said that bitcoin was a “mirage”. At the time, the price of bitcoin was $600. However, even with the recent backlashing, bitcoin has performed exceptionally beyond market expectations.
Bill Gates’ take
While speaking during the same meeting, Microsoft Co-founder billionaire Bill Gates said that given a chance, he would vote against bitcoin. He said that cryptocurrencies do not produce anything so they can’t go up. He termed digital currencies as a ‘greater fool theory’ type of investment.”
Bitcoin prices could also be impacted by the speculations that the Commodity Futures Trading Commission and U.S. Securities and Exchange Commission will be meeting on Monday.
Spencer Bogart, partner at Blockchain Capital said that Buffett and Gates will have a big impact on the price of cryptocurrencies but the biggest impact will come from the regulations put in place.