Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, has been known to speak out against cryptocurrencies, especially Bitcoin. In a recent interview with CNBC’s Squawk Box on April 12, Buffett once again expressed his skepticism about the cryptocurrency market, calling it an “explosion of gambling.”
While this is not the first time Buffett has made such comments about cryptocurrencies, it does represent a slight change from his historical stance regarding Bitcoin and other digital assets.
As far back as 2014, Buffett has criticized Bitcoin, calling it a “mirage” and claiming that the idea that it has any intrinsic value was “just a joke.” In the same year, he also speculated that he “would not be surprised if Bitcoin is not around in 10 or 20 years.”
Buffett has also referred to Bitcoin as “rat poison,” a term he used in a 2018 interview when he doubled down on fellow Berkshire Hathaway vice chairman Charlie Munger’s earlier assertion that Bitcoin was “probably rat poison squared.”
In his recent interview with CNBC, Buffett softened his tone somewhat. While he still referred to Bitcoin as a gambling token without any intrinsic value, he refrained from calling it “rat poison squared.” Instead, he compared the cryptocurrency market to gambling and chain letters.
Despite his criticism of cryptocurrencies, Buffett’s Berkshire Hathaway investment group has not been immune to losses related to the recent banking crisis. As Cointelegraph reported in March, Bitcoin outpaced Berkshire Hathaway’s stock in the six months preceding March 17, with Bitcoin’s price increasing by 31.5% while the stock increased by 5.8%.
It is worth noting that Buffett’s track record as an investor is long and storied, and his opinions on any investment should be taken seriously. However, in the case of cryptocurrencies, many proponents of digital assets have argued that Buffett’s criticism is based on a lack of understanding of the technology and its potential.
Despite this, Buffett’s comments on cryptocurrencies are important as they reveal a wider skepticism about digital assets from some of the most influential figures in the financial industry. It is important for anyone looking to invest in cryptocurrencies or any asset class to be aware of both the potential risks and rewards involved.