Why Warren Buffett not right about cryptocurrency market coming to an end?
Warren Buffett is never good at understanding new trends. His investment style is keenly oriented to traditional Industrial and Manufacturing companies.
He also admitted the wrong move on Google and 'too dumb' to appreciate Amazon.
They criticize, “There is no intrinsic value of crypto currency. No cashflow”.
So is very true with hard commodity like gold, diamond etc. There is no intrinsic value. No Cashflow. Their value is absolutely dependent on what people perceive their value to be at a certain point of time. It just have faith of people which is very hard to break.
Diamond for example - no intrinsic value - but still that ring cost pretty much very deep in our pockets.
So “no intrinsic value” can never be an issue with crypto. Security, transparency, elimination of middlemen, cost reduction and less time consuming are the ultimate benefits provided by cryptos underlying technology, blockchain. Ripple just reduced the cross border transaction from days to few seconds.
I’m damn sure for Bitcoin coming to bad end in future, if proper changes are not implemented to its blockchain. There are many problems associated with Bitcoin which doesn’t make it a crypto currency of future.
There are many other similar currencies (Litecoin, Ethereum, Steller, Stratis etc) which had already figured out the solution for the problem associated with bitcoin. Reduced electricity consumption. Higher transaction rate per second. Scalable. Secured. The list goes on.
It’s the future.