The Value Of Bitcoin Continues Its Climb To With 60K All-Time High

Bitcoin Continues Its Climb With 60K All-Time High

Bitcoin Continues Its Climb With 60K All-Time High

Bitcoin (BTC) has been on a run for the ages going back to last fall. Starting at around $13,000, the crypto currency topped $61,000 the other day. Early in the week at the midway point of March, BTC is trading around $56,300.
The numbers speak for themselves. Yet, skepticism among mainstream investors remains high. Warren Buffet knows a few things about investing money. He is also known for referring to bitcoin as “probably rat poison squared.”

As Bitcoin Hits 60K, An All Time Hight, In a CNBC interview last year, Buffett was quoted as saying:

“I don’t have any Bitcoin. I don’t own any cryptocurrency, I never will.”

That hardline stance is starting to soften with other investors who may have avoided BTC in the past. The overall gain in less than six months is just too hard to ignore. Hard liners such as Buffett still stick with a few guiding principles as BTC relates to other investments.

BTC does not have any unique value such as gold.

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This is why bitcoin has been referred to as an unproductive asset. Buffett along with other mainstream investors prefer stocks. These are tied to corporations that offer something of value. The main purpose of BTC is a means to transfer money. That also makes it rather limited in its usefulness.

The value of bitcoin is based on optimism as opposed to real value or worth. Bitcoin value is tied to what someone else is willing to give you for it. Right now, that is rather high by anyone’s standards.

Crypto does not equate to money.

Mainstream investors do not feel that cryptocurrency meets the criteria of being real money. Buffett has referred to cryptos as a ‘mirage’ that does not have a means of exchange. It does not have a store of value and a unit of account which all help to define currency.

He also likened it to a written check. That piece of paper implies something of value. However, on its own it carries no value or worth. The only reason a check is worth anything is its ability to transmit money.

Mainstream investors find bitcoin and other cryptos hard to understand.

This concept could be the biggest roadblock to mainstream acceptance for any cryptocurrency. People have a tough time grasping concepts they do not understand. Blockchain technology might as well be a foreign language.

If you do not understand something or how something works, it is hard to get excited about it. No matter how much BTC increases in value, this attitude will prevail to a certain extent.

All of this does not mean that bitcoin and other cryptos do not have a place in an investment portfolio.

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Warren Buffett has made his billions investing in stocks. He understands companies and he understands value. Today’s investors are faced with a different opportunity as it relates to investing in BTC. They should make themselves as knowledgeable as possible when it comes to cryptos. From that point, they can then decide if cryptos are right for their investment strategy.

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