Should you buy Bitcoin? Here’s what 8 top investors say

Are you watching the news reports on the soaring value of Bitcoin and wondering if you are wise to keep putting off investing yourself?

Are you hesitating to invest because you don’t understand cryptocurrency and know less about the blockchain? Don’t worry, you’re not alone.

Many investors admit to not understanding the technicalities of the blockchain technology that underpins cryptocurrencies. They are investing purely on the expectation that bitcoin as an investment will continue to rise.

That doesn’t sound very prudent. In fact, it sounds like highly risky behaviour and experts agree.

As of today, one Bitcoin is worth a mouth-watering $18,899. Should you invest? Here’s what 8 top investors say, as reported by CNBC.

Jamie Dimon: Bitcoin is a ‘fraud’

DAVOS/SWITZERLAND, 23JAN13 – James Dimon, Chairman and Chief Executive Officer, JPMorgan Chase & Co., USA is listens during the session ‘The Global Financial Context – Reinforcing Critical Systems’ at the Annual Meeting 2013 of the World Economic Forum in Davos, Switzerland, January 23, 2013.
Copyright by World Economic Forum
swiss-image.ch/Photo Remy Steinegger

This is the opinion of Jamie Dimon, JPMorgan Chase CEO. Dimon has been very critical of Bitcoin, calling people who invest in it stupid. Even after the successful launch of the Bitcoin Futures he said: “I remain highly sceptical.”

He said at the Delivering Alpha conference presented by CNBC and Institutional Investor. “It’s just not a real thing, eventually it will be closed.”

At a separate conference organized by Barclay he reportedly said, “It’s worse than tulip bulbs. It won’t end well.”

Michael Novogratz: Cryptocurrencies like bitcoin are going to be the biggest bubble of our lifetimes

Credit: Bloomberg / YouTube

This is the opinion of Michael Novogratz, the former Fortress hedge fund manager. He shared his thoughts on cryptocurrencies at a CoinDesk bitcoin conference, CNBC reports.

“To be fair, this is a bubble and there’s a lot of fraud mixed in. We look at tons of projects. And some get funded, and they literally look like Ponzi’s. There’s a lot of froth and fraud in something that’s exciting as this.”

Don’t miss: A Dutch family traded everything they own in exchange for bitcoin and now live in a campsite waiting for payday

Mark Cuban: Be prepared to lose your money

Successful investor and billionaire Mark Cuban advises that one should only invest in cryptocurrencies like Bitcoin if you are prepared to lose your money.

If you’re really adventurous it’s OK to invest up to 10 percent of your savings in high-risk investments, including bitcoin and Ethereum. You’ve just “got to pretend you’ve already lost your money,” he told Vanity Fair, adding that it’s like throwing “the Hail Mary.”

Jim Cramer: Bitcoin is like ‘Monopoly money’

Credit: YouTube

The host of CNBC’s Mad Money, Jim Cramer has said on Squawk Box: “It’s kind of like Monopoly money.

“It’s just pure gambling at this point. I mean, if you want to gamble, go to Vegas.

“I mean honestly, what’s the difference between bitcoin and trying to figure out the Super Bowl? I mean it’s gambling.”

Howard Marks: It’s a ‘pyramid scheme’

Credit: CCTV / YouTube

This is the opinion of billionaire investor and co-chairman of Oaktree Capital, Howard Marks.

He wrote in an investor letter: “In my view, digital currencies are nothing but an unfounded fad (or perhaps even a pyramid scheme), based on a willingness to ascribe value to something that has little or none beyond what people will pay for it.”

Jack Bogle: Bitcoin is like the plague

Credit: YouTube

Legendary investor and index fund revolutionary Jack Bogle is very outspoken against the cryptocurrency: “Avoid bitcoin like the plague. Did I make myself clear?” said the Vanguard founder in response to an audience question at a Council on Foreign Relations event as reported by Bloomberg.

“Bitcoin has no underlying rate of return.  There is nothing to support bitcoin except the hope that you will sell it to someone for more than you paid for it.”

That is quite a warning from someone who knows something about making money in investments, don’t you think?

Warren Buffett: It’s a mirage

What about the most successful investor of them all? Surely one only needs to take note of what Warren Buffett has to say about bitcoin?

In a 2014 Squawk Box segment on CNBC, Quicken Loans founder Dan Gilbert asked Buffett about bitcoin. His answer was blunt: “Stay away from it,” he warned. “It’s a mirage, basically.”

At his latest salon, held in Omaha, his response to a question from a business student was:  “You can’t value bitcoin, because it’s not a value-producing asset.”

Maybe we should all simply heed his famous piece of investment advice: “Be fearful when others are greedy.”

Tony Robbins: Investing in bitcoin is ‘like going to Vegas’

The self-made millionaire and best-selling author of “Money: Master the Game” isn’t completely sold on the idea yet either.

“I think [bitcoin] is very iffy,” Robbins told CNBC’s “Fast Money. “I don’t have a clue. I look at that as it’s like going to Vegas.” In other words, only bet what you can afford to lose.

Robbins himself directs a certain amount of money to risky ventures and doesn’t rely on them to work out. For those investments, his mentality is, “I know it is just for fun I’m investing, I know I could lose, this is Vegas.”

Now read: A Dutch family traded everything they own in exchange for bitcoin and now live in a campsite waiting for payday


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