DeVere Group boss Nigel Green has hit out at Warren Buffett’s stance on cryptocurrencies, claiming that the renowned financial guru “needs to be educated” on the matter.
Buffett’s comments on cryptocurrencies came via address to an audience gathered for the Berkshire Hathaway [of which Mr Buffett is CEO] annual meeting where he said cryptocurrencies will come to a “bad ending”.
However, Green points that as Buffet spoke, Bitcoin, the largest cryptocurrency, had added $2,563.48 to its value in the last month, marking a price hike of 37.9%.
“It comes as little surprise that Mr Buffett and his 94-year-old business partner, Charlie Munger, criticized cryptocurrencies at their annual meeting,” said Green, pictured above.
“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.
“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?
Green also points that governments, central banks and financial regulators are all recognising the need for regulatory frameworks to be introduced because cryptocurrencies are becoming so mainstream”.
While pointing that Warren Buffett, pictured left, is “a hero” and one of the “world’s greatest investors”, Green says that Buffet also admits he does not understand cryptocurrencies, pointing to a CNBC interview where the US-financial guru said, “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?”
Future of money?
“I believe his recent comments on cryptocurrencies illustrate his lack of understanding in this area and how he perhaps needs to be educated on what is likely to be the future of money,” said Green.
“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.”