Billionaire investor and Berkshire Hathaway’s Chairman and CEO Warren Buffett[1] reiterated his negative stance towards cryptocurrencies at the annual meeting of his company Saturday, May 5. Buffet repeated his idea that cryptocurrencies[2] will come to a “bad ending,” and claimed that Bitcoin[3] (BTC) is "probably rat poison squared," according to CNBC[4].
In response to a question on Buffet’s view of cryptocurrencies raised by an attendee from Ukraine, the “Oracle Of Omaha” has made[5] yet another anti-crypto statement. According to Buffet, Bitcoin is not a “productive” asset, unlike land or corporate shares. As a result, investors’ demand for it is the only price-determining factor, making digital currency a handy tool for “charlatans,” Buffet said.
The billionaire investor claimed that cryptocurrency community is in for a “bad ending” after the “euphoria wears off.”
Berkshire Hathaway’s Vice Chairman Charlie Munger echoed Buffet’s criticism of cryptocurrency investment, albeit in much harsher terms:
"Someone else is trading turds and you decide I can't be left out."
Earlier in February, Munger called[6] Bitcoin “totally asinine” and argued that people get involved in crypto ”because everybody wants easy money.”
87-year-old Buffet is known for his scepticism towards cryptocurrencies. The billionaire investor has made repeated statements claiming that Bitcoin is neither a currency[7], nor a way of investing[8]. In October 2017, Buffet claimed that Bitcoin had entered[9] the “bubble territory,” and is “going to implode.”
Some institutional players[10], on the other hand, are much more enthusiastic about Bitcoin. For example, the banking giant Goldman Sachs has launched[11] a Bitcoin trading operation earlier this week, commenting that Bitcoin “is not a fraud.”
References
- ^ Warren Buffett (cointelegraph.com)
- ^ cryptocurrencies (cointelegraph.com)
- ^ Bitcoin
