Warren Buffett has made quite a few negative comments about Bitcoin over the years. In the most recent one, he called it rat poison. Nigel Green, founder and CEO of independent financial consultancy firm deVere Group shared his analysis regarding Buffett’s opinion.
Addressing an audience gathered for the Berkshire Hathaway annual meeting, CEO Warren Buffett predicted that cryptocurrencies will come to a bad ending. deVere Group CEO Nigel Green believes Buffett needs to be educated on the future of money.
“It comes as little surprise that Mr Buffett and his 94-year-old business partner, Charlie Munger, criticized cryptocurrencies at their annual meeting. They have done so consistently. But what I do find monumentally baffling is that two of the world’s most successful investors cannot see the intrinsic value of some form of cryptocurrency”, Green said in a note.
“Do they honestly believe that there is no place for, and no value of, digital, global currencies in an increasingly digitalized and globalized world? Do they not see many of the world’s major tech companies, established banking groups and household name investors investing in, using and/or beginning to adopt cryptocurrencies? Do they not see governments, central banks and financial regulators recognizing the need for regulatory frameworks because cryptocurrencies are becoming so mainstream?”, he added.
While being a “hero” to Nigel Green – “one of the world’s greatest investors” – the CEO of deVere Group points to his lack of understanding in this area and how he needs to be educated on what is likely to be the future of money.
“Financial traditionalists, like Mr Buffett and others, appear to exclusively believe in and be motivated by the old, centralized system of money. I would suggest that they need to also be open to a new, decentralized, digital, global currency. Whether they like it or not, the world has profoundly changed and moved on in recent years. It can’t, and won’t, go backwards”, Green concluded.
Warren Buffett once told CNBC that he does not understand cryptocurrencies. “‘I get into enough trouble with the things I think I know something about. Why in the world should I take a long or short position in something I don’t know about?”
deVere Group launched a crypto app, deVere Crypto, in February 2018 and announced a Ripple give-away to customers who register for its pioneering application that helps customers to store, transfer and exchange some of the major cryptocurrencies.
A poll conducted by deVere Group concluded that the majority of its clients consider investing in Bitcoin.