This past week, the legendary investor Warren Buffett made an appearance on CNBC’s "Squawk Box". His comments on Bitcoin and cryptocurrencies drew the ire of some of the boosters in this fledgling finance sector.
Anthony Pompliano, a Bitcoin and crypto enthusiast, mocked Warren Buffett’s technological aptitude. This, he said, was reason enough to ignore Buffett’s outlook on cryptocurrency. Pompliano held up the popularity of Bitcoin in Europe. He said that Bitcoin and digital currencies will win out against central bank monetary policies. Pompliano went as far as to predict that Bitcoin would become the global reserve currency.
Recent history has shown that nation-states are more than willing to constrict Bitcoin and other crypto trading with regulatory crackdowns.
There is a flip side to the Bitcoin, if you will, and those are investors who have boosted it and other cryptos as a form of "digital gold". Indeed, Bitcoin had previously built momentum in past corrections. However, in 2020 Bitcoin has failed to perform as digital gold.
Bitcoin shot up in the first weeks of January, but the onset of major volatility in mid-February has buried the asset. Gold, by contrast, has soared to a seven-year high. Bitcoin may have its boosters who still have faith in its role as a legitimate monetary alternative, but as a safe haven it has shown that it still does not hold a candle to gold.
