Renowned billionaire Warren Buffett recently voiced his opinion on Bitcoin once again. Despite Bitcoin’s recent upward trend in price, Buffett sees it as a bad thing. The Berkshire Hathaway CEO empathizes with individuals seeking quick financial gains from Bitcoin. Even so, in a recent interview, Buffett said Bitcoin is a gambling token with no real value.
During an appearance on CNBC’s Squawk Box, Buffett shared his thoughts on Bitcoin. Among other things, the billionaire stated that Bitcoin is a gambling token and “does not have any intrinsic value.” Bitcoin’s price reached over $30,000 recently, having begun the year at a price below $17,000. Yet, its price remains significantly lower than its peak of $69,000 in November 2021.
“sOMETHING LIKE BITCOIN, it 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,”
Billionaire Warren Buffett in an interview for CNBC’s Squawk Box
Mike Novogratz, CEO of the crypto investment firm Galaxy Digital, commented on Bitcoin back in mid-February. He claimed that the market is undergoing a mounting “fear of missing out” (FOMO) surrounding Bitcoin. At that time, Bitcoin was trading at around $24,800. Novogratz also claimed he “wouldn’t be surprised” if it hit $30,000 by the end of March. Today, we see that Galaxy Digital’s CEO correctly predicted Bitcoin’s price going up.
Unlike Novogratz, Buffett did not mention the FOMO effect in his statement. However, he acknowledged how appealing the “seemingly effortless” wealth generation from Bitcoin was. Buffet stated that humans like participating in “easy money” as their “human instincts” drive them.
“The urge to participate in something where it looks like easy money is a human instinct which has been unleashed. People love the idea of getting rich quick, and I don’t blame them…”
Billionaire Warren Buffett in an interview for CNBC’s Squawk Box
Warren Buffett’s Relations To Cryptocurrencies And Bitcoin
Warren Buffett has voiced his opinions on Bitcoin and the crypto industry several times in the past. Both Buffett and Charlie Munger, Berkshire’s vice chairman, have a history of criticizing Bitcoin. Back in 2018, Buffett referred to Bitcoin as “probably rat poison squared” at a meeting. He further argued on CNBC that when purchasing nonproductive assets, the buyer relies on hope. According to his statements back then, Bitcoin buyers hope that “the next person is going to pay you more” for the cryptocurrency.
At the time of these statements, Bitcoin was trading at around $10,000. In the coming years, Bitcoin skyrocketed and hit an all-time high of $69,000, despite Buffett’s warning. Even so, Buffett and Munger have remained consistent in their critiques. Munger has been particularly blunt in his opinions. In April of 2022, he called Bitcoin “stupid because it’s still likely to go to zero.” Not only that, but Bitcoin is also “evil because it undermines the Federal Reserve System,” according to Munger. He was one of the few individuals who praised China’s decision to ban Bitcoin. Just some months ago, Munger urged a complete ban on cryptocurrencies in the United States.
Warren Buffett’s skepticism toward cryptocurrencies was always there. Given his status as an influential investor, the financial community has always been confused as to how to act toward the crypto industry. Some view his comments on Bitcoin as valid, while others argue that cryptocurrencies can revolutionize the financial sector.
Bitcoin Advocates Continue To Support The Cryptocurrency Despite Backlash
Despite the criticism from very influential individuals, Bitcoin advocates continue to support it. Every week, we see new Bitcoin price predictions done by experts in the community. Most of them forecast increases in Bitcoin’s value. Two months ago, ARK Invest CEO Cathie Wood, predicted that Bitcoin would reach $1.48 million by 2030. She estimated an all-time high of $1 million before.