Billionaire Warren Buffett Warns ” Bitcoin Is A Real Bubble”

Billionaire investor Warren Buffett has joined the ranks of those who believe the market for bitcoin is in bubble territory.

“People get excited from big price movements and Wall Street accommodates,” Buffett said, according to MarketWatch Opens a New Window. .""

 Bitcoin, which allows individuals to compensate each other for goods and services without traditional banking methods, currently trades at nearly $5,900. However, it is not backed by any government and its value has fluctuatedwildly in recent years.

He told attendees:

"You can’t value bitcoin because it’s not a value-producing asset."

Buffett's comments came amidst a significant month for bitcoin's price, according to CoinDesk data. After fluctuating around $4,300 at the beginning of October, the price surged to more than $6,100 less than a week ago.

That Buffett would take a harsh stance toward bitcoin is perhaps unsurprising, given that, in 2014, he advocated that investors stay away from bitcoin entirely.