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Bitcoin trades lower as Warren Buffett names it "rat poison"

Summary:

  • Warren Buffett names Bitcoin "rat poison" during the annual Berkshire Hathaway shareholder meeting
  • Nick Colas, DataTrek Research co-founder, advises holding off on buying Bitcoin citing a few reasons
  • Israel-based cryptocurrency mining company sues the domestic bank for closing its account

Warren Buffett’s remarks drew attention over the weekend as the famous fundamental investor dubbed Bitcoin "rat poison" admitting at the same time he did not understand the blockchain technology. He alluded to cryptocurrencies during the Berkshire Hathaway 2018 annual shareholder meeting in Omaha, Nebraska on Saturday. However, his opinions should not be viewed as shocking ones as Buffett already tended to lash out digital currencies in the past suggesting they will end badly after all. Even as Buffett’s comments are not new ones Bitcoin prices retreated from below $10,000 to somewhat above $9,200 at the time of writing, but it’s unlikely they were battered by the meeting in Omaha. Technically there is a likelihood Bitcoin could head lower over the next days as it failed to break through its crucial resistance twice. That said, one may expect a deeper slump targeting $8,500 or so before any bulls’ resurrection.

link do file download linkBitcoin lost steam again after it failed to move above its resistance line. Therefore, a slightly more profound pullback could be on the cards in the near term. Source: xStation5

Nick Colas, DataTrek Research co-founder, advises to hold off on buying Bitcoin citing a few reasons

Virtual currencies have settled down lately prompting some people to consider buying them in anticipation of a sudden rise as it was the case at the end of the last year. Having said that, the number of crypto pundits calling for higher prices has shrunk substantially and even Wall Street’s first analyst to cover Bitcoin has taken a more cautious approach regarding Bitcoin. Nick Colas, DataTrek Research co-founder, said during his interview with CNBC that investors should avoid Bitcoin citing lacklustre fundamentals surrounding what he calls the "FANG stock of the cryptocurrency world" (it refers to Facebook, Amazon, Netflix and Google). Colas mentioned disappointing growth of cryptocurrency wallets as well as it slowed down to just 2.2% last month compared to 5-7% per month on average in 2017. He concluded that "like any new technology, you need new adopters to come in to make it more valuable".

link do file download linkDash is slowly heading to an important demand zone which could provide a buying opportunity before long. Source: xStation5

Israel-based cryptocurrency mining company sues the domestic bank for closing its account

Union Bank of Israel being the sixth largest country’s bank has been sued by the Israel-based cryptocurrency company Israminers for closing its account after three months of operations. In its statement the bank wrote that it will no longer allow the company to accept funds from Bitcoin exchanges, and then sending back money already received in the account - this could hit the crypto company cutting back on its investment capability such as buying mining hardware. The account is to be closed within 30 days. Let us recall the Israeli banking system is not supportive of cryptocurrency companies to say the least forcing them to turn to the courts to get service.

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