A well-known billionaire recently joined the chorus of crypto-currency naysayers...
And unlike prior “crypto haters” like J.P. Morgan’s CEO, Jamie Dimon (who clearly had an axe to grind), this billionaire presents himself as “unbiased.”
That’s why his negative comments are having such a big impact on crypto prices, including Bitcoin’s fall of nearly 20%.
Initially, we thought the market would see through this charade, so we kept quiet.
But since — once again — no one in the mainstream press is willing to call “bull$#!t” on what’s happening here, we’ll do it ourselves!
What Do They Have to Gain (or Lose)?
Before we reveal the identity of this billionaire and tell you what he said about Bitcoin, let’s look at another high-profile businessman who recently predicted Bitcoin’s demise.
Several months ago, Jamie Dimon, the CEO of J.P. Morgan, came out publicly against Bitcoin. Specifically, he called it a “fraud.”
Within a few days, Bitcoin’s price sank by 20% (sound familiar?). But it soon exploded to new highs — and Mr. Dimon was accused of market manipulation.
Why? Because at the exact same time he was bashing Bitcoin and driving its price down, traders from J.P. Morgan were caught using overseas accounts to buy Bitcoin.
And this explains why, when you see a high-profile businessperson talking trash about a specific investment, you need to pause and ask yourself, “Why?”
What do they have to gain, and what do they have to lose?
If you can figure out the answer, you could put some big profits in your pocket…
Latest Billionaire Bitcoin Basher
Which brings us back to the newest “Bitcoin basher” I mentioned earlier…
It’s Warren Buffett, one of the most influential and successful investors of all-time.
Two weeks ago, Buffett came out publicly (and aggressively) against Bitcoin.
He called it “rat poison.”
When Buffett’s comments came out, we expected the market to shrug them off. We thought the media would cry foul and point out the clear, simple bias in Buffett’s statements.
But that didn’t happen. Instead, the mainstream press seemed all too eager to jump on the bandwagon — and this sent Bitcoin into freefall.
Which is why we felt it was time for us weigh in.
We want to explain what’s really happening here...
The Real Deal
Again, when people like Buffett come out so strongly against something like Bitcoin, you have to ask yourself why?
Do they have an axe to grind?
To figure this out, let’s first consider the fact that Buffett’s company, Berkshire Hathaway, owns entire businesses.
And historically, its largest source of revenue has come from its insurance businesses.
In fact, Berkshire’s 70+ insurance subsidiaries generate billions of dollars in revenue and profits each year.
But that’s not all they provide…
Insurance businesses also provide Berkshire with something called “float.”
You see, when a customer pays their insurance premium, insurance companies keep that money, and they can use it however they’d like.
They generally invest it in the stock market. That way, if they have to pay out a claim in the future, they expect the money they invested in the market will have grown so it’s far larger than the insurance claim.
For the past 40 years, Buffett has been using this strategy very effectively. This is what’s turned him into one of the world’s wealthiest people.
But now, technologies like Bitcoin are posing a significant risk to Buffett’s empire...
To explain why, let’s turn back the clock to 2014 — that’s when Buffett let something slip…
Cryptos Could Disrupt the Insurance Market
Back in 2014, when the potential of self-driving cars started coming into focus, Buffett was interviewed by the press…
In an unusual moment of candor, he called self-driving cars a “real threat” to his fortune.
That’s because self-driving cars would lead to less accidents, and therefore, there would be less need for expensive insurance premiums.
But if less premiums were coming in, that would decrease Buffett’s “float” — and in turn, lessen his ability to continue minting profits.
Well, it’s the same scenario with cryptos — Buffett just hasn’t admitted it yet…
You see, cryptos could dramatically disrupt the insurance industry.
By using blockchain technologies, new insurance companies — competitors to Buffett — could be far more efficient:
From creating insurance contracts, to processing and evaluating claims, to detecting fraud and issuing payouts, blockchain-based insurance companies could run circles around Buffett’s old-school businesses.
This could lead Buffett to lose his cash cows — and his access to investment capital.
In our view, this is the main reason he’s trying to bash crypto-currencies:
He recognizes the threat they pose, and he’s going to defend his throne at all costs.
The Future of Crypto
Fortunately, the future of crypto-currencies doesn’t depend on “elites” like Warren Buffett.
So don’t be alarmed by the latest dip in Bitcoin and crypto prices.
On the contrary, we view such dips as short-term buying opportunities.
This is a chance to scoop up our favorite cryptos while their prices are temporarily down.
We recommend you consider doing the same.