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What Some Prominent Businessmen are Saying About Bitcoin

Bitcoin has surged more than 600% since the start of the year. Just last week, it breached the S$10,000 mark. This has been an amazing run, considering in 2011, someone reportedly used 10,000 Bitcoins to buy two pizzas. Sadly for the pizza buyer, those same 10,000 Bitcoins are now worth around S$90 million.

Despite the recent surge in price as more investors and traders turn to bitcoin as a store of value, many prominent financial experts are still at loggerheads about the true value of the digital currency.

In this article, I take a look at what some of the prominent people are saying about bitcoin.

The Bulls

“Bitcoin is better than currency in that you don’t have to be physically in the same place, and of course for large transactions, currency can get pretty inconvenient.” – Bill Gates

“It is not a speculative investment even though it is being used as such by other people. As Bitcoin networks grow the value of Bitcoin grows. As people move into Bitcoin for payments and receipts they stop using US Dollars, Euros, and Chinese Yuan which in the long-term devalues these currencies.” – John Macafee

“Virgin Galatic is a bold entrepreneurial technology. It’s driving a revolution. And bitcoin is doing just the same when it comes to inventing a new currency.” – Richard Branson

The Bears

“Governments are going to crush it one day. Governments like to know where the money is, who has it and what you’re doing with it.” – Jamie Dimon

“It’s worse than tulip bulbs. It won’t end well. Someone is going to get killed. Currencies [though] have legal support.” – Jamie Dimon

“You can’t value bitcoin because it’s not a value-producing asset… it’s a real bubble in that sort of thing.” – Warren Buffett

“Stay away from it. It’s a mirage, basically… The idea that it has some huge intrinsic value is a joke in my view.” – Warren Buffett

“… very speculative instrument. More importantly, it is an instrument that people use for money laundering.” – Larry Fink

The Foolish Bottom Line

Even with Bitcoin prices soaring to new highs almost every month this year, some of the most respected investors in the world still cannot agree on the true value and utility of Bitcoin. As investors, we should ensure we do our due diligence before making any investment decision regarding cryptocurrencies.

Meanwhile, for more (free!) investing insights, sign up here for your FREE subscription to The Motley Fool's investing newsletter, Take Stock Singapore. It will teach you how you can grow your wealth in the years ahead.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice.