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BITCOIN IS “NOXIOUS POISON”

BITCOIN IS “NOXIOUS POISON”

Haitham Sadek 0 Comments

During a two-hour question-and-answer session at the Daily Journal shareholder meeting, the vice chairman of Berkshire Hathaway and longtime trusted partner of Warren Buffett said he considers the current bitcoin craze to be “totally asinine.” “Bitcoin is noxious poison,” Munger said in response to a question. On bitcoin, the technology might be interesting but the investing frenzy around it over the last year should have prompted a government crackdown like the one in China, he said. “Our government’s more lax approach to it is wrong. The right answer to something like that is to step on it hard.”

Last month, Berkshire CEO Warren Buffett, in an interview with CNBC, gave his opinion about Bitcoin and other Cryptocurrencies saying “I can say with almost certainty that they will come to a bad ending” . The investment tycoon also indicated that he has nothing invested in Bitcoin or other cryptocurrencies, either long or short, stating: “If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth. We don’t own any, we’re not short any, we’ll never have a position in them.”

On top, here is a summary of the opinions of other senior figures in the world of finance:

Yves Mersch, a member of the European Central Bank’s executive board, called for a global clampdown on virtual currencies because of their threat to financial stability.

Agustin Carstens, the new head of the Bank for International Settlements, has described bitcoin as “a bubble, a Ponzi scheme and an environmental disaster”. He said “If authorities do not act pre-emptively, cryptocurrencies could become more interconnected with the main financial system and become a threat to financial stability,”

Nouriel Roubini , the American economist credited with predicting the 2008 financial crash, has called bitcoin “the mother of all bubbles” and “much worse” than tulip mania. He told Bloomberg TV on 2 February: “It’s on the way down to zero. The fundamental value of bitcoin is zero.” He said the other 1,300-plus cryptocurrencies were “even worse” and slammed the underlying blockchain technology. He added that blockchain has been around for 10 years and its only application is bitcoin or cryptocurrencies and they “are a scam”.

JP Morgan boss Jamie Dimon said in mid-September that Bitcoin was a fraud that would ultimately blow up. He said the digital currency was only fit for use by drug dealers, murderers and people living in places such as North Korea. The boss of America’s biggest bank said he would fire “in a second” anyone at the investment bank found to be trading in bitcoin. He later softened his stance, and revealed on 9 January that his daughter had bought two bitcoins.

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