If something is "virtual," does it really exist? This question has haunted us since the beginning of our journey as Homo Sapiens. When it comes to Bitcoin and other cryptocurrencies, this is an important question. You can buy and sell stocks, bonds, paper currencies and commodities like corn and wheat. They exist in the real world. You can physically deliver them, although they mostly are represented in electronic form.
Which brings us to Warren Buffett, one of the greatest investors ever, who recently noted: “You can’t value bitcoin because it’s not a value-producing asset...it's a real bubble in that sort of thing.”
For those of you devoted to decoding Buffett's every pronouncement, his meaning is clear: Cryptocurrencies are not tangible investments. They don't generate earnings or pay dividends. How do you really value them if they have no intrinsic or "book" value? And people who buy bitcoin are simply betting that the price will go up.
Continue reading on this link...Do you think the idea that since Bitcoin is really virtual...then it has no "intrinsic" value and therefore can possibly just be a big bubble?
