Buffett’s student thinks cryptocurrencies will fall to zero

Growing concerns about the global economy and investors' risk aversion continue to put pressure on the price of bitcoin, with almost all crypto market assets showing a double-digit percentage drop. The main cryptocurrency has also lost a lot of value in recent months, and it is expected that the worst is yet to come.

Mohnish Pabrai, who is widely considered to be a disciple of Warren Buffett, told CNBC that investments in cryptocurrencies will eventually fall to «big zero.» It is noteworthy that this is not the first time Pabrai has targeted crypto assets. Speaking on the All Money podcast last December, the investor expressed disdain for the rapid listing of new assets on crypto exchanges. Pabrai, who once spent $ 650,000 on a charity dinner with Warren Buffett, said that the crypto sector would crash to zero and «hurt a lot of people.»

Warren Buffett, CEO of Berkshire Hathaway, has long ridiculed cryptocurrencies for their high volatility. the 91-year-old billionaire investor recently confirmed that he is convinced that cryptocurrencies are nothing but air, adding that he would not buy all the bitcoins on the market even if they were offered to him for only $ 25.

Buffett’s hatred of bitcoin is understandable. A significant portion of Berkshire Hathaway’s assets are held by large financial institutions and payment service providers, such as: Bank of America, Wells Fargo, Visa, and Mastercard — companies that, if cryptocurrencies win, will have to give up a lot of space in the financial services market.