Additionally, billionaire Elon Musk also made fun of it on many occasions and supported the meme-based cryptocurrency “Dogecoin”.
Hitesh Jain, vice president of research for Yes Securities Ltd agrees with Buffett and Musk. He said, “Ultracheap money pumped in by global central banks has found its way into many assets, including Bitcoin. We are in a scenario where safe-havens and riskier assets are all rallying simultaneously, which is a theoretical contradiction. So much so that even negative-yield bonds are garnering inflows. It has become like hunting with the hounds and running with the hare.”
“Large investors who are put off by a weak dollar are flocking towards bitcoin, irrespective of the fact that it lacks inherent fundamentals. Unlike gold, bitcoin is extremely volatile. So, I don’t think bitcoin can replace gold as an inflation hedge.” Hitesh added.
To sum it up, some analysts say that the cryptocurrency rally is similar to that of 2017 and a correction can occur at any moment. Some billionaires say that it won’t and they believe that its best moments are yet to come.
