CEO of $250 billion multinational holding conglomerate Berkshire Hathaway, Warren Buffet, leave no stone unturned to diss at bitcoin, a digital commodity which is often termed as the digital gold by its proponents. The leading cryptocurrency in terms of market capitalization, bitcoin, has garnered a lot of support from across the globe since its inception back in 2008. However, it has failed to convince one of the biggest names in the world of finance Warren Buffet, of its usefulness and viability to replace the centuries-old traditional banking system.
In a recent meeting with the shareholders of his company Berkshire Hathaway, ss per Buffet, investing in bitcoin is NOT an investment and said:
It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me.
Warren Buffet is one of the most respected names in the business world and his opinions do percolate in the general public and build a sentiment. As of now, the major connotation that is attached with bitcoin in the media, among the institutions and the general public is somewhat negative. These remarks from Buffet will only fuel the fire that has been lit by the revolution that cryptocurrency proponents promise to deliver despite a plethora of problems attached to it.
In the meeting, Buffet also stated:
The remarks made by Buffet make some sense too as the 88 years old veteran has been involved in the business world for quite a significant time. His notion of perceiving bitcoin as just a gambling device makes sense due to the fact that most of the people that are in the crypto space are here to make a quick buck. People want to get involved in Initial Coin Offerings (ICO) of various tokens so that they can cash out when the tokens are worth much more in the future with usually no specific interest in the project lying underneath. As Buffet said:
I’ll tear off a button here. What I’ll have here is a little token…I’ll offer it to you for $1000, and I’ll see if I can get the price up to $2000 by the end of the day… But the button has one use and it’s a very limited use.
Secondly, the issue of volatility that is associated with bitcoin makes it more of a gamble than an investment. Back in 2017, the asset was seen rising from a few hundred thousand dollars to almost $20,000 in a mere matter of days. This resulted in a lot of fortunate people becoming “bitcoin millionaires”. Soon after the spike, the asset fell down drastically over the subsequent months and since then, a bear market has been witnessed which is now poised to be broken as per some bullish experts. Cryptos do provide an investment option but it is too dangerous and risky.
Thirdly, the initial wave that drove the adoption of bitcoin was due to its linkage with negative and illegal activities. Darknet, or Dark Web, is one of the prime examples of places where cryptocurrencies are used for carrying out fraudulent and illegal activities with the likes of drugs and ammunition deals and much more.
But despite all the criticism for bitcoin, Warren Buffet couldn’t hold himself back from praising the underlying technology of blockchain as he stated:
“Blockchain…is very big, but it didn’t need bitcoin. J.P. Morgan, of course, came out with their own cryptocurrency,
The innovation that blockchain brings in the form of a decentralized peer-to-peer system of operation cannot be questioned. It is the use-cases that it brings that require extensive research.
So, the thing that is here to understand is that conventional businessmen and financial institutions are not quite liking the idea of cryptocurrencies. Cryptos are considered to be rebellious be some as they challenge the well-established norm of the banking system. Previously, the General Manager of International Monetary Fund (IMF), Christine Lagarde, also expressed her concerns regarding this highly unregulated space stating:
I think the role of the disruptors and anything that is using distributed ledger technology, whether you call it crypto, assets, currencies, or whatever … that is clearly shaking the system.
READ ALSO: Yes, ‘Bitcoin is Clearly Shaking The System’ and Even IMF Can’t Control
The major reasons behind the negative image of bitcoin involved price manipulation, scams and volatility. In order to solve these issues, the need is to develop concrete legislation around it so that its role as a currency or an investment asset can be defined clearly. Is it going to become the future gold or the future dollar, things are still blurry. If big business fishes like Warren Buffet are to be convinced of the positive aspects that bitcoin offers such as faster transactions, freedom from central control, borderlessness etc., the need is to define its role in the market and provide regulatory clarity. Once people like Warren Buffet start adopting this space, things will move quickly for this space in the right direction in terms of public adoption. In retrospect, if bitcoin is to rival the centuries-old fiat system, it needs to address the issues that make brands like Buffet dislike it.
Bitcoin (BTC) Price Weekly Forecast: Slow And Steady Increase Likely
- There was a downside correction from the $10,954 swing high in bitcoin price against the US Dollar.
- The price is holding the $10,000 support and it could bounce back in the near term.
- There is a major bullish trend line forming with support near $10,140 on the 4-hours chart of the BTC/USD pair (data feed from Kraken).
- The price could dip in the short term before it starts a fresh increase above $10,500 in the near term.
Bitcoin price is showing positive signs above $10,000 against the US Dollar. BTC could rise steadily as long as there is no close below the $10,000 support area.
Bitcoin Price Weekly Analysis (BTC)
In the last weekly forecast, we saw bitcoin price holding the key $10,000 support area against the US Dollar. The BTC/USD pair climbed higher and traded above the $10,000 resistance area. Moreover, there was a break above the $10,800 level and the 100 simple moving average (4-hours). However, the price failed to continue higher and topped below the $11,000 resistance.
A swing high was formed near $10,954 and recently the price started a fresh decline. It broke the key $10,500 support area and the 100 SMA. Moreover, the price spiked below the $10,000 support area. Finally, a swing low was formed near $9,903 and the price is currently correcting higher. It broke the 23.6% Fib retracement level of the last decline from the $10,954 high to $9,903 low.
However, the upward move is facing hurdles near the $10,400 and $10,500 levels. Additionally, the price is also struggling to climb above the 50% Fib retracement level of the last decline from the $10,954 high to $9,903 low. If there is a break above the $10,450 and $10,500 levels, the price could continue to rise. The next key resistance is near the $10,800 level.
On the downside, there are many supports near the $10,100 and $10,000 levels. Additionally, there is a major bullish trend line forming with support near $10,140 on the 4-hours chart of the BTC/USD pair. If there is a downside break below the trend line and the $10,000 support, the price could resume its decline.
Looking at the chart, bitcoin price seems to be consolidating in a contracting range below the $10,500 resistance. It might soon break the $10,500 resistance and continue higher. Conversely, a downside break below $10,000 could start a strong decline in the coming sessions.
4 hours MACD – The MACD for BTC/USD is slowly moving back into the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for BTC/USD is currently stable above the 50 level.
Major Support Level – $10,000
Major Resistance Level – $10,500
Bitcoin Price Stays Over $10K as Trader Warns Ethereum Chart Is ‘Ugly’
Bitcoin (BTC) price was consolidating $10,000 support on Aug. 23 after successfully shunning four figures during the day’s trading.
Market visualization. Source: Coin360
Bitcoin delivers firm bounce off $10K
Data from Coin360 show a newly strengthened Bitcoin managing to stay above the $10,000 marker, which it had crossed four times over the course of the week.
Currently in the upper end of a $300 trading corridor, BTC/USD circled $10,200 at press time, as analysts considered the opportunities ahead for fresh gains and less bearish volatility.
Bitcoin 7-day price chart. Source: Coin360
“The trend toward stability, an essential ingredient in a median of exchange, is accelerating Bitcoin’s advancement as a digital form of gold,” Bloomberg quoted its own Intelligence analyst, Mike McGlone, as saying on Thursday.
Sentiment had waned earlier after Bitcoin appeared to be heading broadly lower. Analysts voiced concern about support, arguing a further loss could trigger dives to as low as $7,000.
“In the short term, I’m a little bit cautious,” CNBC’s active Bitcoin bug Brian Kelly told the network on Friday. He added that at future lower levels, the buying opportunity for BTC accumulators was unparalleled.
“When people start saying ‘Is Bitcoin dead again?’ — that’s when I get real bullish,” he added.
Altcoins rally but Ether worries loom large
A Bitcoin breakdown was also still on cards for regular commentator Josh Rager, but for the short term, it was top altcoin Ether (ETH) which presented more worries.
Heading a troubled altcoin market, ETH had circled multi-year lows against BTC before rising above 0.019 on Thursday. For Rager, however, the general trend is down, and he advised not to buy under current conditions.
“If BTC breaks down to $8ks, ETH will follow with a break under $150,” he summarized in a fresh update.
“ETH chart is ugly,” he added.
ETH/BTC briefly outperformed BTC/USD in daily progress Friday, rising 3.7% to $192 against the latter’s 2.8% gains.
Ether 7-day price chart. Source: Coin360
Other altcoins in the top twenty meanwhile delivered even stronger performances, such as Bitcoin Cash (BCH) on 5.35% and EOS (EOS) on 6.8% daily gains.
The overall cryptocurrency market cap also staged a recovery versus Thursday, rising to $266 billion. Bitcoin’s share dipped slightly to 68.4%.
Crypto Inflation Figures Show Why Bitcoin is King Above Others Like ZEC and XRP
The high inflation figures for altcoins like ZCash (ZEC) and XRP are providing yet another basis for the “bitcoin is king” argument.
Indiscriminate Dumping Hurting Altcoin Value
Tweeting on Friday (September 13, 2019), economic and crypto analyst, Alex Krüger highlighted the relationship between high inflation figures and poor price performance for certain altcoins.
Krüger’s tweet was based on figures published ViewBase — a platform that provides information on ‘coin’ dumps.
Whether by fixed or fluctuating schedules, altcoins like ZEC and XRP are showing significantly higher inflation figures. ZEC, for example, currently has an annualized inflation rate of more than 35%.
More than 7,000 ZEC tokens are ‘minted’ per day. This figure amounts to about 0.098% dilution of the circulating supply, much higher than cryptos with daily coin additions via mining.
Earlier in the year, Zcsh disclosed an inflation bug that was capable of creating an infinite number of tokens.
On the fixed inflation end of the spectrum, Ripple releases 1 billion XRP every quarter. XRP has an annualized inflation of close to 30%.
As previously reported by Bitcoinist, some XRP proponents have expressed displeasure with the constant dumping of the token by Ripple.
Earlier in the week, the company transferred 100 million XRP (about $26 million) to former CTO Jed McCaleb sparking fears of more sell-offs.
Bitcoin is Separate from the Rest
For bitcoin, the situation is completely different, with the top-ranked cryptocurrency sporting an inflation rate of 3.97%.
After the 2020 halving, this figure will be cut in half taking bitcoin’s inflation even lower than the current Federal Reserve interest rate.
Compared to bitcoin’s lean inflation figures, altcoins like ZEC and XRP seem like penny stocks whose value is constantly declining.
Bitcoin is up more than 170% since the start of the year while ZEC and XRP have moved over 25% in the opposite direction.
Together, XRP and ZEC are among some of the worst-performing cryptos of 2019. Altcoins, in general, have endured a miserable 2019, continuing the pains for bag holders from 2018’s bear market.
Meanwhile, commentators are calling a new all-time high (ATH) for bitcoin before the end of 2019. The emerging consensus is that the price action for the top-ranked crypto has entered another zone of parabolic advance.
Thus, a move for BTC towards its previous ATH would mean a further leg-up that could go as high as $30,000 in 2021.