Concerning “Warren Buffett tells shareholders about spending $51 billion” (April 30): I imagine cryptocurrency values are untethered to any actual productive capability. Funding guru Warren Buffett says cryptocurrency has no inherent, elementary worth. That is an statement that ought to seize the eye of each crypto investor. If the currencies have been in a speculative bubble, their downward potential is big and just about unbounded till it doubtlessly hits zero.
The preferred and best-known cryptocurrency, Bitcoin, has already fallen nicely over 50% from its highest stage simply six months in the past. Buffett has mentioned that cryptocurrency will not be a productive asset and doesn’t produce something tangible of worth. It’s worth is predicated on hypothesis, not fundamentals.
Like every 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 wonderful. Sadly, many who thought that crypto would offer simple cash will get burned. I imagine when the bubble bursts, it’s going to create a tsunami that washes away any short-term positive aspects a crypto speculator loved. These people will study the lesson many earlier than them have discovered the laborious approach: There isn’t any such factor as a free lunch.
Ken Derow • Swarthmore, Penn.
Get opinion items, letters and editorials despatched on to your inbox weekly!