Warren Buffett doesn’t hide his distaste for cryptocurrencies. The legendary investor and CEO of Berkshire Hathaway once again showed his scepticism towards Bitcoin on CNBC’s Squawk Box on April 12th.
Warren Buffett simply hates Bitcoin
There’s not a year without Warren Buffett criticizing Bitcoin along with other famous skeptics, such as Jamie Dimon, Charlie Munger, or Jim Cramer. Needless to say that Bitcoin’s price rises no matter what anyone says.
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Buffett’s comments reaffirm his long-held pessimism about Bitcoin, the largest cryptocurrency in the world by market capitalization, calling it a “gambling token” with no fundamental value. While people may be right about being reserved to the unknown, Bitcoin became the best-performing asset in the first quarter of 2023.
"#Bitcoin is a gambling token and it doesn't have any intrinsic value. But that doesn't stop people from wanting to play the roulette wheel," says Warren Buffett on #crypto. pic.twitter.com/6MQAiyrS5J
— Squawk Box (@SquawkCNBC) April 12, 2023
Bitcoin and other cryptocurrencies are gambling activities like roulette and slot machines, according to Buffett. He points out that the prospect of winning and the attractiveness of success stories may entice people.
The psychological factors that draw people to these games are then illustrated by his discussion of the disparate chances on a roulette wheel and the noisy payouts of slot machines. Buffett suggests that investors may make uninformed financial choices due to sensationalism and FOMO.
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Buffett admits he does not know what can be done to stop this downward spiral. The Oracle of Omaha famously called cryptocurrencies “rat poison squared” and has repeatedly urged investors not to put their money into these risky digital assets.
Final thoughts
Buffett is unwavering in his belief that Bitcoin is nothing more than a speculative risk, despite the widespread adoption of cryptocurrencies in the banking industry. While he is skeptical, Michael Saylor’s MicroStrategy bought even more Bitcoin in 2023, making their portfolio worth over $4 billion.
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