Growing concerns about the state of the global economy and investors’ risk-off sentiment continue to weigh on the bitcoin price. The top cryptocurrency has already lost a lot of value in recent months, and expectations are that the worst is not yet over.
Woeful Times Lie Ahead
Veteran value investor Mohnish Pabrai told CNBC that crypto investments will eventually crash to the “big zero”.
The bitcoin bulls have been able to defend the crucial $30,000 price threshold over the past few weeks. While market participants expect a significant rebound after months of bloodletting, some pundits have warned that a deeper sell-off is in the cards.
This is notably not the first time Pabrai is taking aim at crypto assets. Speaking at the Everything Money podcast last December, the renowned investor expressed his contempt for the fast addition of new coins in the crypto market. Pabrai, who once spent $650,000 on a charity lunch with Warren Buffett, predicted at the time that the crypto sector would abruptly tank to zero and “hurt a lot of people.”
Warren Buffett Still Hates Crypto
Berkshire Hathaway CEO Warren Buffett has long derided cryptocurrencies for their lack of value and high volatility. The 91-year-old billionaire investor recently reiterated that cryptocurrencies are worthless, adding that he would not buy all the bitcoin in the market even if it was offered to him for a meager $25.
Meanwhile, Buffett’s sidekick and Berkshire Hathaway vice-chairman, Charlie Munger, has previously asserted that bitcoin “is stupid because it’s still likely to go to zero.”
Buffett’s and Munger’s hatred for bitcoin isn’t surprising to many. A substantial chunk of Berkshire Hathaway’s holdings and Munger’s portfolio are major financial institutions and payment providers such as Bank of America, Wells Fargo, Visa, and Mastercard — businesses that crypto aims to disrupt the most.