Relating to “Warren Buffett tells shareholders about spending $51 billion” (April 30): I consider cryptocurrency values are untethered to any actual productive capability. Funding guru Warren Buffett says cryptocurrency has no inherent, basic worth. That is an statement that ought to seize the eye of each crypto investor. If the currencies have been in a speculative bubble, their downward potential is big and nearly unbounded till it doubtlessly hits zero.
The most well-liked and best-known cryptocurrency, Bitcoin, has already fallen effectively over 50% from its highest degree simply six months in the past. Buffett has mentioned that cryptocurrency will not be a productive asset and doesn’t produce something tangible of worth. It’s worth relies on hypothesis, not fundamentals.
Like all bubble in the event you had been fortunate sufficient to get in early and prescient sufficient to take your revenue and get out early, you made out tremendous. Sadly, many who thought that crypto would supply straightforward cash will get burned. I consider when the bubble bursts, it can create a tsunami that washes away any non permanent positive factors a crypto speculator loved. These of us will be taught the lesson many earlier than them have realized the exhausting approach: There is no such thing as a such factor as a free lunch.
Ken Derow • Swarthmore, Penn.
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