Buffett on Bitcoin: 'It's a Mirage, Stay Away'

Image: Buffett on Bitcoin: 'It's a Mirage, Stay Away'

Friday, 14 Mar 2014 10:33 AM

By Dan Weil

Share:
  Comment  |
   Contact Us  |
  Print  
|  A   A  
  Copy Shortlink
The bitcoin digital currency elicits vastly different reactions from financial experts. Count legendary investor Warren Buffett, CEO of Berkshire Hathaway as a pessimist.

"Stay away from it. It's a mirage basically," he tells CNBC.

The bitcoin has endured a rocky ride in recent weeks, with Mt. Gox, formerly the dominant exchange for the currency, collapsing.

Editor's Note: Get Free Guide ‘Maximize Your Social Security Benefits’

"It's a method of transmitting money. It's a very effective way of transmitting money," Buffett argues. But he noted that you can transmit money with a check or a money order as well.

"People do it. I hope bitcoin becomes a better way of doing it," he notes. "You can replicate it a bunch of different ways. The idea that it has a huge intrinsic value is a joke."

Basically, he adds, bitcoin "is a very fast money order . . . anonymously."

Campbell Harvey, a professor of international business at Duke University, is more optimistic about the currency. He tells The Christian Science Monitor that top venture capitalists such as Marc Andreessen are backing bitcoin.

The digital currency is in its early phases and has the potential "to be massively disruptive" to the global payment system, Harvey contends. Just like with other new technologies, "there will be some growing pains."

Editor's Note: Get Free Guide ‘Maximize Your Social Security Benefits’

Related Stories:

© 2014 Moneynews. All rights reserved.

Share:
  Comment  |
   Contact Us  |
  Print  
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Retype Email:
Country
Zip Code:
 
Hot Topics
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
You May Also Like

Average US 30-year Mortgage Rate at 4.12 Percent

Thursday, 31 Jul 2014 16:43 PM

Average U.S. mortgage rates declined slightly this week, hovering near their lows for the year. . . .

Debit Overdraft Fees Often Exceed Cost of Purchase

Thursday, 31 Jul 2014 15:21 PM

The fees that banks charge debit-card users who overdraw their accounts usually cost more than the items being bought. . . .

Financial Times: US Banks Could Lose $1 Trillion When Fed Hikes Rates

Thursday, 31 Jul 2014 13:59 PM

U.S. banks face the possibility of losing up to $1 trillion in deposits when the Federal Reserve finally pulls the plug  . . .

Most Commented

Newsmax, Moneynews, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, NewsmaxWorld, NewsmaxHealth, are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved