Warren Buffett, a renowned American investor who has been critical of cryptocurrencies for a long time, has reiterated his negative view of Bitcoin. He argued that Bitcoin lacks intrinsic value and is nothing more than a gambling instrument. In a recent interview on CNBC's Squawk Box, the CEO and chairman of Berkshire Hathaway referred to Bitcoin as a "gambling token."
According to him, individuals pursue Bitcoin in hopes of making a quick profit, but he cautioned that this quest for easy money comes with significant risks. He stated that Bitcoin is simply a speculative tool without any underlying value, yet individuals still gravitate towards it like a game of chance. He further noted that the desire to engage in something that appears to be a quick path to riches is an inherent human instinct that has always existed.
In contrast, the Oracle of Omaha, a moniker he earned as one of the most successful and closely watched investors worldwide, stated that he doesn't fall for get-rich-quick schemes. He remarked, "I've always preferred to accumulate wealth slowly while having fun along the way."
Despite Buffett's views, the crypto market, including Bitcoin, has recently experienced a significant surge. The top cryptocurrency has increased by more than 80% year-to-date and is currently trading above the $30,000 threshold, with a 25% gain in the past month alone. In fact, Kevin O'Leary, a Shark Tank celebrity, disclosed that Bitcoin has been his best-performing investment this year, followed by other altcoins such as Polygon's Matic.
The surge in cryptocurrency prices this year follows a 65% drop in BTC in 2022, caused by the collapse of some high-profile crypto projects and hedge funds, including FTX, formerly the world's third-largest crypto exchange.
Crypto Experts Respond to Buffett's Criticisms of Cryptocurrency
Buffett has gained notoriety for his critical views on cryptocurrency. He has referred to Bitcoin as "rat poison squared" and a "delusion" in the past. In May of 2022, the billionaire investor announced that he would refuse to purchase all of the world's bitcoin, even for a mere $25.
Buffett explained his reasoning, stating that he wouldn't know what to do with the digital asset as he would eventually have to sell it back to someone else. He believed that it wouldn't provide any value to him, and thus, he wouldn't take it.
Buffett's partner and right-hand man, Charlie Munger, shares a similar viewpoint. Munger has referred to Bitcoin as a "venereal disease" and even advocated for the prohibition of the entire crypto industry.