Warren Buffett: the cryptocurrency market is waiting for a complete collapse

One of the world’s most popular investor, owner and head of holding company Berkshire Hathaway, Warren Buffett (Warren Buffett), once again with the pessimism expressed in the address of bitcoin. He considers the prospects of bitcoin and other cryptocurrencies is not too bright, and the market soon will collapse.

«I can almost confidently say that the cryptocurrency market is waiting for a complete collapse. When and how this happens I can’t say as I don’t know,» said Buffett.

Buffett said that if he could, he could have put that the price of each cryptocurrency will drop within the next five years. Also, the investor has admitted that he knows little about futures on bitcoin, but Berkshire Hathaway has no involvement in the trade and has no plans to do that.

«I have enough problems with those things in which I understand. Therefore, I see no reason to open position for the instrument, about which I know almost nothing,» added Buffett.

Three months ago, at a meeting with students, Buffett called bitcoin a «real bubble» and explained that investors will never be able to determine its real value, as it «does not create value asset.»

However not all so is pessimistic, as Buffett and some of his colleagues. According to financial analyst and former chief policy analyst JPMorgan Chase Tom Lee (Tom Lee), despite the fact that at the end of December last year, bitcoins seriously subsided, there is every reason to say that bitcoin will not only recover in 2018, but will double or even triple its value.

Speaking about the short term, Li believes that bitcoin will return to the December position.

«I believe that if in the first half of the year, bitcoin will return to positions in the area of $ 20,000, in the second half we will see more significant growth. I believe that bitcoin is still an asset that is worth having».

If the Volume forecasts are based on the law of Metcalf, according to which the network’s utility is proportional to the square of the number of users on this network. Multiplying the number of users, transaction cost, it is possible to obtain the value of bitcoin. In November last year based on these data, Whether already predicted a growth rate of bitcoin to 11 $ 500 by mid-2018. Lee estimates that 94% of all bitcoin exchange rate movements over the past four years can be explained by this equation.

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