Even as we witness a rebound in the price of Bitcoin in the last few days, the elusive cryptocurrency has lost a staggering 43% in just 3 months, data from Coinbase showed. Notably, Bitcoin price jumped by nearly 10% on Friday, February 8th to $3,657.34. However, the gains have now been pared as Bitcoin is off highs and is currently trading near $3,557 levels, according to Coinbase. The latest gains on Friday, have seen bitcoin rise by more than $300 to $3,663, even though this is miles away from the $20,000 highs reached in December 2017.
While Bitcon had made stellar gains in 2017, rising from just $1,000 in January 2017 to above $20,000 by the end of 2018, leading to its rising popularity among many, top market voices from around the world and even back home have cautioned against investing in the asset. “This is a new tulip. It will be 200 years later as the madness of this century,” Rakesh Jhunjhunwala told Reuters, when asked if about his take on Cryptocurrencies.
Top investors including Warren Buffett and Jim Rogers have shunned the Bitcoin as having no value. Warren Buffett told marketwatch in October-17, “You can’t value bitcoin because it’s not a value-producing asset,” adding it’s a real bubble in that sort of thing.
“As an asset class, you’re not producing anything and so you shouldn’t expect it to go up. It’s kind of a pure ‘greater fool theory’ type of investment,” Bill Gates told CNBC in an interview in 2018. “I agree I would short it if there was an easy way to do it,” he added. Bill Gates along with fellow billionaires Warren Buffett and Charlie Munger were participating in a conversation on CNBC. Noted commodities-guru Jim Rogers too said that Bitcoin appears bubblish. “It looks bubblish when you see the kind of price we see in bitcoins. I certainly don’t know which one will come out on top, or if anyone comes out on top. But, I don’t own any,” Rogers told in an interview to Kitco news in 2018.