Billionaire investor Warren Buffett on Monday said buyers of bitcoin, which he characterizes as "rat poison squared", thrive on the hope they'll find someone else who will pay more for it.
Billionaire investor Warren Buffett on Monday said buyers of bitcoin, which he characterizes as "rat poison squared", thrive on the hope they'll find someone else who will pay more for it.
Likening bitcoin demand to tulip mania in 17th century Holland, Buffett, chairman and CEO of Berkshire Hathaway Inc , said the mystique behind the cryptocurrency has produced a surge in its price.
"It does create a rising price, creates more buyers... If you don't understand it, you get much more excited," Buffett said on CNBC television.
Meanwhile, a month after RBI barred regulated lenders from facilitating cryptocurrency transactions, trading volumes have surged dramatically alongside a sharp rally in prices.
Exchange operators, investors and analysts say people are rushing to take advantage of a three-month window the Reserve Bank of India has given banks to sever ties with cryptocurrency traders and exchanges.
Getting in now enables investors to convert rupees into cryptocurrencies, which they can later swap for other coins via private trading platforms even after the central bank's rules take hold.
"There is a positive sentiment in the industry that the government will not ban trading in cryptocurrencies, and even if formal banking channels cannot be used, people can move to crypto-crypto trading platforms," Shivam Thakral, chief executive of BuyUcoin, a cryptocurrency exchange.
"New investors are coming to our exchanges while existing ones are regaining interest after the drop because they're getting good value and are making money as the prices of cryptocurrencies move higher," he said.
(With inputs from agencies)
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