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Has Warren Buffett and Jamie Dimon Changed Their Opinion on Cryptocurrency?

Though the regulators are trying to regulate the cryptocurrency market around the world, there has not been any change in the opinions expressed by two financial experts. Berkshire Hathaway CEO, Warren Buffett, and JPMorgan Chase CEO, Jamie Dimon, maintained their opinion on not only bitcoin and the digital coin sector. However, it is a different issue that some of the financial service providers in the United States are exploring the ways of using blockchain technology for their operations.

Harshest Critics

It is a well-known fact that both Buffett and Dimon are the harshest critics of the virtual currencies. During a recent “Squawk Box” in the CNBC, the two experts have cautioned investors to be “beware” on bitcoin and other cryptocurrencies. This would not be a surprising thing considering that they have given enough reasons for their opposition to the new age financial instrument. For instance, Buffett said earlier that digital coin does not produce anything to warrant a valuation. If any virtual currency price is moving up or down, it is merely on the expectations of someone will pay higher than the acquired value.

While the interview was going on, the two were specially asked as to who are the biggest haters of bitcoin among them. The investment guru responded that he has already set a high standard and indicated that he was not sure whether Jamie could top him or not as far as the digital currency market is concerned. Dimon too responded to the question saying that he does not want to be a spokesman of bitcoin, Fortune.com reported. That is a clear indication of how he treats the cryptocurrency that is enjoying the leading value among the different digital coins.

In 2017, prices of most of the digital currencies have hit a rooftop or their lifetime high. As a result, traders reaped unimaginable returns last year alone. That was in contrast to the preceding years though the returns were also significant. The uncontrolled price movement towards upper side has invited the attention of regulators around the world to plug the loopholes. As a result, a number of countries like China and India have resorted to banning the trading of digital currencies in their countries. On the other hand, other countries have tightened their regulations on the virtual currency market thus leading to SEC terming it as security in the United States.

No significant change in opinion

The developments have not made any significant changes in the opinion of Buffett and Dimon. Both have been critical of bitcoin for a long time. In 2014, Buffett even termed it as a “mirage.” As if that was not enough, he termed the popular digital coin as “probably rat poison squared.” For his part, Dimon termed the leading virtual currency as a “fraud” last fall though he regretted the remark later. However, he pointed out during an interview with Fox Business that “blockchain is the real” disruptive technology. That is mainly because of its influence to make an alternative to normal accounting software securely.

About the author

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Megan Mayle

Megan, while pursuing MBA in California, started writing blogs on the financial developments and revolutions around the globe and soon got caught up with cryptocurrencies. She has been giving consultancy about smart contracts. Megan focuses on latest updates on cryptos from banks and on regulations by governments worldwide.

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