The debate over bitcoin and its authenticity has been there for long. As many investors are using this digital currency phenomenon to make millions of dollars, others are warning people to stay away from this scam.
The same is observed when two billionaires recently showed contrasting viewpoints for the hyped cryptocurrency – bitcoin. While Warren Buffet had some doubts over the prevailing bitcoin industry, another billionaire Peter Thiel says that bitcoin holds a great potential which is constantly being underestimated.
So let’s discuss in detail the remarks of both of these billionaires in terms of bitcoin market.
Warren Buffet and the Bitcoin Doubts
Warren Buffet, the billionaire investor has joined hands with those who take the bitcoin market as the bubble territory.
During the Q&A session in Omaha, Warren Buffet discussed a range of topics and gave his remarks of the cryptocurrency market as well. According to the Buffet’s statement, the huge price fluctuations entice people to invest in it. He also criticized the practice of applying bitcoin a value.
As per Buffet, one cannot apply value in bitcoin because bitcoin is not at all a value-producing asset. However, the current remarks of Warren Buffets are not very surprising keeping the fact in mind that back in 2014, he advocated that it is better for investors to stay away from the bitcoin bubble entirely and claimed that bitcoin is basically a mirage.
Warren Buffet is not the only one who has voiced his doubts over the bitcoin market. Recently, the Saudi Prince Al-Waleed bin Talal also declared bitcoin a total failure. But then, there are some people who still have confidence in the cryptocurrency and consider it a potential asset.
Peter Thiel Sees Great Potential in Bitcoin Market
According to billionaire Peter Thiel, people are constantly underestimating the great potential of bitcoin industry. He said that although he is not sure and is skeptical about all other cryptocurrencies, he strongly believes in the potential of bitcoin. For the same reason, Peter compared bitcoin with gold.
Peter thinks that bitcoin is a reserve form of money and can easily be compared with gold – something that has a store value and must not be used in order to make payments.
Peter says that bitcoin is based on the phenomenon of ‘security of the math’ and this means that neither it can be hacked nor it holds any security issues. Since bitcoin is much harder to mine, in comparison to gold, it is much more constrained.
Nonetheless, cryptocurrency has a limited supply and only 21 million bitcoin can be mined.
If we look at some major figures in the overall business world, there is a huge debate on the sustainability of cryptocurrencies.
JP Morgan, Jamie Dimon, and even the Saudi Prince Al-Waleed bin Talal called bitcoin a big fraud and claims that people buying or investing money in this currency are simply stupid as bitcoin is definitely going to implode in the near future.
Alternatively, there are some investors and billionaires such as Peter Thiel and Michael Novogratz – former hedge manager – who see bitcoin head to $10,000 soon enough.
No matter if it’s a scam or a valuable asset, bitcoin has fairly taken over the market of digital currency and is not going to fade away any soon.