• Christopher Waller, Federal Reserve board governor, has expressed his distaste for cryptocurrencies in a recent interview and believes they have no real value.
• He is concerned about banks engaging in activities that present heightened risk of fraud and scams.
• Warren Buffett and Charlie Munger have also made it clear they don’t think much of bitcoin or its digital counterparts.
Christopher Waller’s Opinions on Crypto
Christopher Waller is the Federal Reserve board governor who recently spoke out against the digital currency space during an interview. He compared cryptocurrencies to baseball cards, claiming that their only value comes from the belief of others. He warned investors not to be surprised if prices drop to zero at some point, and said he supports „prudent innovation“ in the financial system but urged caution when dealing with crypto assets due to their lack of regulation.
Waller’s Concerns About Banks
Waller is particularly worried about banks engaging in activities that present a heightened risk of fraud and scams as well as legal uncertainties, inaccurate disclosures, and other risks associated with digital currencies due to their limited connection with the banking system. To protect customers from these risks, he suggested crypto exchanges take necessary steps such as KYC protocols to ensure the identities of their customers are legitimate.
Buffett & Munger’s Disdain
Warren Buffett and Charlie Munger – Berkshire Hathaway executives – have also shared their disdain for bitcoin or its digital counterparts over the years. In fact, Buffett had gone so far as calling it ‘rat poison squared’ in the past.
Volatility & Price Crashes
The volatility and price crashes traders have witnessed over the last year has earned crypto its fair share of haters as well which further adds fuel to people like Waller’s fire against cryptocurrency investments. Investment advice should always be taken seriously regardless of whether one agrees with it or not before any type of investment is made into any asset class including cryptocurrency investments.
Conclusion
Cryptocurrencies are highly speculative assets which come with a high level of risk being unregulated by traditional financial institutions therefore require extra caution when investing into them given how volatile they can be at times even after taking certain precautions such as KYC protocols prior to investing
