New Delhi: Mohnish Pabrai, a value investor and a disciple of Warren Buffett have once again criticized cryptocurrencies.
In a recent interview, Pabrai warned investors of cryptocurrency that the worst is yet to come for the digital assets, despite the recent correction. In 2022, The price of Bitcoin, the largest cryptocurrency, has come down 36.95% to $30,097.80 from $47,733. Other crypto coins have also faced a significant correction amid the ongoing macro-trends that appear unfavorable for crypto investments.
The philanthropist also warned investors of crypto assets that their investments will be worth ‘a big zero’, in an interview with CNBC. The Indian-origin businessman has been actively voicing against crypto investors.
Previously, he had pointed out how new cryptocurrencies are being created so fast. “There are new currencies and new currencies being created every hour,” Pabrai had said during his appearance on the Everything Money podcast in December 2021.
His recent predictions for the crypto industry have come in the backdrop of the recent Terra (Luna) crash. Terra, which once commanded a $400 billion market cap, saw a dramatic fall in its valuation last month.
The crash of Terra (Luna), which was once ranked among the top 10 most valuable cryptocurrencies, wreaked havoc on the crypto industry. Several other digital coins saw a massive drop in their valuations amid the crash. Terra (Luna) had reached its all-time high of about $120 in April 2022. But with the recent crash, the cryptocurrency’s price dropped below $1. Also Read: From the love of cricket to his own love story – Here’s Google CEO Sundar Pichai’s simple yet relatable story.
Back in India, the Reserve Bank of India (RBI) governor Shaktikanta Das has been warning investors against investments in risky digital coins. He had said that cryptocurrencies pose huge financial stability risks in the economy. Also Read: Pakistan stock market crashes, become Asia’s third worst-performing stock market.