Value investor and Warren Buffett’s disciple Mohnish Pabrai claims that the current market correction doesn’t mean the crypto winter is ending. According to him, the worst is yet to come for digital assets.
As usual, big traditional finance magnates and investors are going against crypto.
That’s because they don’t want to lose the power of their banks and see crypto as some teens’ entertainment.
Despite that, a lot of institutional investors have already entered crypto. And this is another problem for the community, obviously.
But still, the majority of prominent economists and financial experts express a lot of skepticism about digital assets.
One of them is Warren Buffett’s disciple Mohnish Pabrai, who recently told CNBC that crypto investments will be a ‘big zero’ in the end.
What does this ‘end’ mean and should we believe him at all?
So how about that crypto winter?
Value investor and philanthropist Mohnish Pabrai harshly criticized the crypto market on the ‘Everything Money’ podcast back in December.
And recently he performed with pretty much the same theses during his interview on CNBC.
Actually, Pabrai predicted that the ‘$3 trillion industry would disappear, hurting a lot of people. He also complained about the rapid proliferation of new coins, stating that there are new currencies being created every hour.
“If you take all the crypto to zero, it will hurt a lot of people,” an investor told the CNBC concerning the crypto winter.
Despite a significant market correction after the last month’s Terra collapse, Mohnish Pabrai claims that crypto guys should be waiting for a way worse situation to come soon.
Recently, another Buffett’s right-hand man Charlie Munger predicted that Bitcoin was very likely to plunge to zero.
But, as we know, Buffett and his team are happy to make a bunches of such sensational headlines.
What does Buffett himself say?
Veteran investor and CEO of Berkshire Hathaway Warren Buffett mocked crypto once again a few weeks ago saying that Bitcoin wouldn’t produce anything significant in the next 10 years.
Earlier at the beginning of 2022, he said that he ‘wouldn’t buy all cryptocurrencies in existence even for $25 since’ as he believes that they have no value at all.
Though, 91-years Buffett also threw up Wall Street for turning the market (probably the stocks market) into a ‘gambling parlor’.
That’s all kind of interesting and dissonant. Because in February 2022 Warren Buffett announced a $1 billion investment in Bitcoin-friendly neobank, dropping his Visa and Mastercard stocks.
Last year Buffett’s Berkshire Hathaway also invested $500 million in the same Brazilian digital bank startup Nubank. This bank is about to share crypto payments for tens of millions of customers in Brazil, Mexico, and Colombia.
So despite his strict anti-crypto statements, Buffett’s investing portfolio is full of crypto-loving companies.
One of them is Bank of New York Mellon Corp., which chief financial officer stated that digital assets could become a ‘meaningful source of revenue’ for investment banking firms. Whether Buffett believes in the crypto winter or not, he is invested.
Sources: CNBC, Cointelegraph, UToday