Jakarta, CNBC Indonesia – Not everyone is a fan of cryptocurrencies. Including Chairman and CEO Berkshire Hathaway who repeatedly said Bitcoin is a bad investment.
In 2018 at the Berkshire annual meeting, this seasoned investor compared crypto money to the possibility of a rat poison box. Next he told CNBC, Bitcoin did not create anything.
“When you buy nonproductive assets, all you rely on is people paying more to you because they are more excited when someone else comes,” said Warren, quoted by the Express, Monday (26/4/2021).
A few weeks earlier, he had even called investing in Bitcoin a gamble. According to him, this type of player is not an investment.
Warren also warned investors that Bitcoin and other cryptocurrencies are ‘almost certain’ to come ‘at a bad end’.
On Friday (23/4/2021), a number of cryptocurrencies experienced a decline. Ethereum’s price decreased by more than 10% to US $ 2140 while Bitcoin was 3.44% to US $ 49,903.71.
Cryptocurrency prices plummet only one day after the President of the United States, Joe Biden, announced plans to change the tax code. This includes raising the capital gains tax to 39.6%.
Social media users criticized the plan for saying it could hurt cryptocurrency investors.
However, some analysts believe that the crypto market will return to normal. One of the reasons is that a number of real and institutional investors have issued digital currency policies as legitimate assets.
“I think maybe you should have some kind of technical selling. Ether is the driving force, which outperforms Bitcoin,” said Chris Westo, head of research at Pepperstone Markets Ltd.
(dru)
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