Warren Buffett, the Chairman and CEO of Berkshire Hathaway, has once again expressed his disdain for Bitcoin (BTC) during a recent interview with CNBC’s Squawk Box. Comparing Bitcoin to a “gambling token,” Buffett insisted that Bitcoin has no intrinsic value, and it has caused an “explosion of gambling.” However, despite his criticism of Bitcoin, Buffett is well-known for his aptitude for investing. Berkshire Hathaway, the company that he leads, is one of the largest market capitalizations in the world, with a range of well-known businesses, such as Geico, Duracell, and Dairy Queen.
During the CNBC interview, Buffett made a comparison between Bitcoin and chain letters. He explained how, as a child, he didn’t like chain letters as he could start his own. Similarly, he maintained that people can gamble through other means rather than using Bitcoin. The business magnate has emphasized his position on Bitcoin as a “gambling token” in previous interviews. In 2019, he criticized cryptocurrencies for their lack of intrinsic value and predicted that Bitcoin would ultimately see a “bad ending.”
Buffett’s recent interview also made reference to the rise in gambling during the COVID-19 pandemic, where lockdown measures in many countries have prompted more people to find new sources of entertainment. Stimulus checks that many people have received have also helped encourage gambling, he said. While Buffett is known for his criticism of Bitcoin, his reputation as an expert investor remains strong. His investing strategies have garnered a lot of attention, and his annual shareholder letters are some of the most widely read reports in the world.
Despite Buffett’s criticism, the cryptocurrency market continues to grow, with more institutional investors expressing interest in digital assets. Several companies, including Tesla and Square, have invested in Bitcoin, with the latter investing $50 million last year. In addition, PayPal has recently introduced a crypto checkout service, allowing customers to use cryptocurrencies as a payment method. Meanwhile, Bitcoin continues to attract attention from retail investors, such as the recent surge in demand from millennials and Gen Z investors.
In the end, opinion remains divided on the potential of Bitcoin and cryptocurrencies. While some experts believe digital assets could solve the problems of traditional finance and shape the future of money, others remain skeptical and see cryptocurrencies as risky and volatile. For now, Bitcoin continues to gain traction among investors and consumers, despite critics like Warren Buffett.