Earlier this week, Warren Buffett trashed Bitcoin in an interview with CNBC.
“It’s ingenious, and blockchain is important, but Bitcoin has no unique value at all. It is a delusion, basically,” he said. “Who knows where we’ll be next year. I’m really sorry it happens because people get their hopes up that something like that will change their lives. I’m sympathetic to people.”
This wasn’t Buffett’s first outing as a Bitcoin basher. Last year he called it “probably rat poison squared”, and has also dubbed it a “mirage” and “tulips” – a reference to the Dutch tulip bubble that bankrupted many investors in the 17th century.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” he has declared.
Sorry, Mr Buffett, but you just don’t get it, according to blockchain venture Hello Diamonds “Time and time again you’ve fought Bitcoin, stating that it has “no intrinsic value” – this time even going as far as to say that our industry is moved by directionless ambition and greed. And time and time again we’ve had to remember how brilliant of an investor and financial thought leader you’ve always been, forcing ourselves to look past our initial rejection of this statement,” the venture says in a Medium post.
In terms of the ambition and greed criticism, Hello Diamonds concedes that cryptocurrency is by no means an industry free of troubles, but it’s supported by a community that’s both economically incentivised to contribute and ignited by innovation. “That, by itself, has more value to the average folk than the entire ‘traditional’ system. If you choose to see this as greed, you can have your way, but be aware that we come from an entirely new standpoint. A community standpoint.”
People, especially in the internet age, are no fools, it adds. “Cryptocurrencies first rose in value thanks to the unique advantages that electronic money and decentralisation brought to those on the shorter end of the financial system, of which uber-wealthy individuals, such are yourself , are a symptom. From your position, it might be hard to imagine how someone can have trouble sending money to other countries, even to war zones, or to get away from out-of-control inflation. It might even be hard to imagine how decentralisation can change the lives of millions of people by setting them free from oppressive regulations.”
Coming soon
Hello Diamonds is gearing up to launch its DiamDEXX wallet. Users will be able to purchase DiamCoin, pitched as “the first cryptocurrency to be 100% backed by real, physical diamonds. Our currency, pegged to the price of a dollar, will also be backed by a smart-vault system, which ensures we’ll be able to keep the price perfectly aligned at $1.”
Disclaimer: The views and opinions expressed by the author should not be considered as financial advice. We do not give advice on financial products.