This Monday Bitcoin began to lose positions again and continues to decline. At the weekend the #1 cryptocurrency almost reached the mark of $10 thousand. Perhaps one of the reasons for the volatility of the course was the loud statement of the well-known investor Warren Buffett, who became famous for his negative attitude towards Bitcoin, this time calling it “rat poison squared.” The businessman’s opinion about the cryptocurrency was also shared by the billionaire Bill Gates.
According to Gates, cryptocurrencies are one of the most speculative things in the world, he considers investments into them “the Big Fool Theory in its pure form.” An American businessman said in the program “Squawk Box” on CNBC that if there was an opportunity, he would put everything against Bitcoin.
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” Gates said on CNBC’s “Squawk Box.”
Calling investments into cryptocurrencies “The Big Fool Theory” seems appropriate to him, since the theory itself implies the receipt of money by acquiring securities the quality of which does not matter, with the subsequent resale of them at a higher cost, regardless of which there will still be someone (“a bigger fool”) who will buy it with the aim of reselling the asset with greater profit.
The theory says that when the sale is mass, the share prices collapse. This is due to the fact that speculative bubbles burst due to growth.
Gates added his opinion the following:
“Bitcoin and ICOs, I believe completely [they’re some] of the crazier, speculative things,” Gates said.
Surprisingly, Bill Gates’s view of cryptocurrency was completely different in 2014. As a result of this, a few months later, his company Microsoft began to accept the digital currency as a means of payment. Despite this, the billionaire significantly changed his mind this year, which became very clear after he said that drugs are bought with the help of cryptocurrencies, noting the technology of currency as a tool leading to death.
Also Bill stated that someone once gave him BTC for his birthday, but he sold it in a few years.
A recent statement by the representative of Berkshire Hathaway, Warren Buffett, did not remain unnoticed. A day later after the statement, Berkshire Hathaway vice-chairman Charlie Manger supported his colleague.
During the Yahoo Finance interview, the 94-year-old Manger said that cryptocurrency is “an antisocial, stupid and immoral product.” Manger also spoke about trading cryptocurrencies, calling them immoral, despite the fact that they are quite profitable.
Manger also pointed out the supporters of Bitcoin, whose activities he called shameful propaganda and “a combination of dementia and immorality.”