Despite the current crypto frenzy, some fearmongers still hold onto their convictions. Warren Buffet, Paul Krugman, Hilary Clinton, Kelsey Hightower, and Jacob Silverman are just a few of the steadfast critics of cryptocurrencies. They have worries about everything, from the viability of blockchains to the increasing political influence of the industry’s giants to the potential social and economic effects of the great experiment in digital money.
As cryptocurrency loses value and hints of impending industry regulation emerge, the voices of these fearmongers grow more powerful. Cryptocurrency, in general, is a controversial topic at the moment. Here, we examine some critical justifications by influential individuals who believe that the currency is a terrible idea.
1. Warren Buffett
Warren Buffet has long maintained that the crypto narrative will not have a successful conclusion. Buffett once referred to Bitcoin as “likely rat poison squared” in 2018. He is regarded as one of the richest men in the world, and he became a national hero in the United States because he avoided Wall Street throughout his career as an investor and opted to stay in Nebraska. Therefore, his comments carry weight and may instill fear among crypto investors.
Buffett claims that bitcoin is a fraud and a fiction that doesn’t have any intrinsic worth. Given that Bitcoin opposes his primary investment strategy, Buffett’s lack of enthusiasm for it is understandable. As a value investor, he seeks out undervalued stocks or businesses with strong long-term prospects. He exclusively makes investments in areas he is familiar with.
2. Paul Krugman
The Nobel Prize-winning economics expert and New York Times journalist, Paul Krugman, has slammed bitcoin and other digital currencies numerous times, labeling them as wasteful, narrow, and only valued owing to rumors and speculation. He has often criticized the cryptocurrency sector for supporting criminals, complicating transactions, exploiting the vulnerable, and acting like a pyramid scheme.
When bitcoin prices reached all-time peaks in December 2017, Krugman declared that the currency was clearly in a bubble. He claimed that the price increase was due to some complicated technological feature that no one truly understood.
Additionally, he claims that despite having 12 years to establish itself as a commodity, Bitcoin has failed to acquire a place in the contemporary economy.
3. Hilary Clinton
Even though she previously described them as fascinating, Clinton made it clear in her comments at the Bloomberg New Economy Forum in 2021 that she is not a supporter of cryptocurrencies. Instead, her main worries are the potential effects of these digital currencies on the world’s economy and political situation. She warned a worldwide audience, saying she believes the emergence of cryptocurrencies to be a problem that requires more attention.
She claims that cryptocurrency can destabilize countries, undermine currencies, and challenge the dollar’s status as the world’s primary reserve currency.
Overall, the crypto world is hyped right now. Additionally, the market is still relatively new. Therefore, if you are risk averse, there is nothing wrong with staying true to commodities or investing in renewable initiatives. However, you can choose to diversify by putting a tiny portion of your investment into cryptocurrency if you are ready to incur risks in return for greater potential rewards.