Warren Buffett blasts bitcoin as worthless and vows he will never own a cryptocurrency
American business magnate who is the CEO of Berkshire Hathaway Warren Buffet shared a piece of his mind about cryptocurrencies.
In an interview with CNBC’s Becky Quick on Monday (February 24), the successful investor-cum-philanthropist said, “Cryptocurrencies have no value.”
“I don’t have any cryptocurrency and I never will,” added Buffett, who was interviewed two days after he released his annual shareholder letter.
“You can’t do anything with it except sell it to somebody else,” he added. “But then that person’s got the problem.”
Buffett has been a long-time critic of the world’s largest digital coin. He called bitcoin “probably rat poison squared,” ahead of the 2018 Berkshire Hathaway annual shareholder meeting. A “mirage,” “not a currency,” and “tulips” are among the descriptors Buffett has used for bitcoin, according to CNBC’s Warren Buffett Archive.
“Bitcoin has been used to move around a fair amount of money illegally,” Buffett said. He joked that bitcoin’s “economic contribution” to society might be reducing demand for suitcases.
“The logical move from the introduction of bitcoin is to go short suitcases,” he quipped, as criminals increasingly move money online instead of stuffing cash into duffel bags.
Buffett may be a vocal critic of crypto, but he gave kudos to Sun for paying a record amount for their charity meal.
The investor auctions off the chance to eat with him each year to raise money for Glide, a homeless charity in San Francisco.
“Justin gave $4.6 million to Glide and that will buy a lot of meals and provide a lot of beds for people in San Francisco,” Buffett said. “I thank him.”
Warren Buffett is one of many financial experts from the legacy space that have decided to avoid cryptocurrency.
His decision to do so will not stop blockchain development or cryptocurrency investment.
Also, his assertion that cryptocurrencies are extremely risky holds true. Thus, perhaps the best move for crypto advocates is to stop trying to change his mind.