Concerning “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, elementary worth. That is an commentary that ought to seize the eye of each crypto investor. If the currencies have been in a speculative bubble, their downward potential is large and nearly unbounded till it probably hits zero.
The preferred and best-known cryptocurrency, Bitcoin, has already fallen effectively over 50% from its highest stage simply six months in the past. Buffett has mentioned that cryptocurrency isn’t a productive asset and doesn’t produce something tangible of worth. It’s worth is predicated on hypothesis, not fundamentals.
Like all bubble if you happen to have been fortunate sufficient to get in early and prescient sufficient to take your revenue and get out early, you made out superb. Sadly, many who thought that crypto would offer straightforward cash will get burned. I consider when the bubble bursts, it is going to create a tsunami that washes away any short-term positive factors a crypto speculator loved. These of us will be taught the lesson many earlier than them have realized the laborious manner: There is no such thing as a such factor as a free lunch.
Ken Derow • Swarthmore, Penn.
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