Bitcoin Theory: Foolish!
[2018-05-08 04:52 GMT]
Cryptocurrencies’ prices fell on Tuesday following criticism from Berkshire Hathaway CEO Warren Buffett and co founder of Microsoft Bill Gates on Monday.
Bitcoin was trading at $9,431.6 by 11:25PM ET (03:25GMT) on the Bitfinex exchange, down 1.2% over the previous 24 hours.
Ethereum, the world’s second largest cryptocurrency by market cap, down 3.5% at $754.03 on the Bitfinex exchange.
XRP/USD’s XRP token traded 3.0% lower to $0.83106 on the Poloniex exchange.
Meanwhile, Litecoin slid 1.9% to $166.02.
Warren Buffett told CNBC in an interview that the “asset itself (Bitcoin) is creating nothing.”
"When you're buying nonproductive assets, all you're counting on is the next person is going to pay you more because they're even more excited about another next person coming along," Buffett said on CNBC’s “Squawk Box”.
In the same interview on Monday, Bill Gates echoed Buffett’s comment and said that he would bet against the virtual currency if he could.
"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. "I would short it if there was an easy way to do it."
Buffett also called Bitcoin “probably rat poison squared” over the weekend.