Two of Wall Street’s harshest bitcoin critics are once again warning investors of the dangers of bitcoin. In an interview earlier today on CNBC, Warren Buffett and Jamie Dimon told viewers to “beware” of bitcoin.
The interview takes place just weeks after Buffett called bitcoin “rat poison squared” during Berkshire’s 2018 annual shareholder meeting.
In the CNBC interview, JP Morgan Chase CEO Jamie Dimon told the host “just beware” of bitcoin and described how he doesn’t “want to be a bitcoin spokesman.”
Buffett, in the same panel discussion, described how he has “set a high standard” for bitcoin criticism and that he doesn’t know “whether Jamie can top me or not.”
You can view the whole interview with the bitcoin critics here.
Dimon has previously made headlines across the bitcoin community for calling the world’s largest cryptocurrency a “fraud”. Dimon explained that anyone “stupid enough to buy it” will one day pay the price for their decisions.
In January, Dimon distanced himself from his earlier comments, explaining that he regretted the “fraud” comment. However, based on the latest CNBC interview, Dimon certainly hasn’t changed his overall opinion of bitcoin.
To the credit of Buffett and Dimon, bitcoin’s value has plummeted since last fall. Since reaching an all-time high of $19,800 in December 2017, the price of bitcoin has dropped to lows of $6,500 before settling in the $7,500 range, which is where it sits today.
Are Buffett and Dimon right? Is bitcoin a fraud? Is bitcoin really “rat poison” designed to ensnare gullible investors?
There are certainly gullible investors involved in the bitcoin space. Investors flocked towards the crypto space in 2017 hoping to get rich quick by buying bitcoin and altcoins. Some of those who bought early enough certainly got rich quick, while others – like anyone who bought into the markets when bitcoin was over $10,000 – has likely watched their portfolio plummet.
Of course, Buffett and Dimon don’t seem to reflect the overall sentiment of Wall Street. Amidst the pair’s latest comments, we have news of Goldman Sachs opening its own cryptocurrency exchange. This past week, it was revealed the Fidelity Investments is developing its own in-house cryptocurrency exchange. There are certainly outspoken critics of bitcoin and cryptocurrencies – but there are obvious signs that Wall Street is warming up to the industry.