Bitcoin? Rat poison. The words of Warren Buffett and others. Indeed, according to a survey conducted by JP Morgan, 33% of investors agree with the Oracle of Omaha.
In fact, at the beginning of 2021, Warren Buffett described Bitcoin as “rat poison” and it seems that he is not the only one who thinks so.
The JP Morgan survey
Not only 33% of those surveyed by JP Morgan called BTC rat poison. Another 16% of the sample claimed that Bitcoin is a passing fad.
However, another 42% said cryptocurrencies are here to stay, while 9% are convinced they will become a major asset.
The sample surveyed included 3,000 investors from 1,500 institutional players. Thus an audience that could be categorized as high finance.
- 10% trade cryptocurrencies,
- 20% plan to do so,
- 40% have been active with crypto.
Bitcoin, investors in alignment with Warren Buffett
This survey seems to dispel the argument that institutional investors are increasingly interested in Bitcoin. In fact, the growing demand for BTC by this category justifies the marketing of products such as investment funds. It is also the reason why several applications for approval of Bitcoin ETFs are pending with the US SEC.
But it seems that, beyond the interest, institutional investors show the same fears as Warren Buffett when it comes to Bitcoin. And after all, in these days of high volatility, with intraday swings between +/-10-20% this scepticism is also understandable.
Yet volatility is part of Bitcoin, so those who invest in it, whether retail or institutional, must be able to live with it without panicking.
After hitting $65,000 last April, the price of BTC has practically halved. Bitcoin is currently worth around $33,000, but the forecasts are positive and several analysts say that an accumulation phase is underway which could soon lead to new rallies. And who knows if it will be enough to combat the fears of institutional investors and maybe even change their opinion on BTC.