+ 2.58
+ 0.78%
+ 2.29
+ 0.66%
+ 2.93
+ 0.7%
+ 1.55
+ 0.91%

Buffett Still Bearish On Bitcoin: 'The Asset Itself Is Creating Nothing'

May 7, 2018 12:23 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More

Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett has always been a skeptic of cryptocurrencies, and he didn’t pull any punches when it comes to bitcoin at Berkshire’s annual shareholder meeting over the weekend. Buffett called bitcoin “probably rat poison squared,” and he clarified that stance further in an interview with CNBC.

Creates Nothing

“The asset itself is creating nothing,” Buffett said. “When you're buying nonproductive assets, all you're counting on is the next person is going to pay you more because they're even more excited about another next person coming along.”

Buffett's business partner Charlie Munger went so far as to call bitcoin "anti-social, stupid and immoral."

Buffett has a long track record of bashing bitcoin. Back in October, Buffett said bitcoin is a “real bubble.”

“You can’t value bitcoin because it’s not a value-producing asset,” he said at a Q&A session with business students.

In fact, Buffett’s criticism of bitcoin goes all the way back to 2014 when he said bitcoin was a terrible long-term investment.

“Stay away from it,” he said in an interview with CNBC. “It’s a mirage basically. The idea it has some huge intrinsic value is just a joke, in my view.”

Bitcoin's Value

For several years, bitcoin investors got the last laugh. Bitcoin started 2014 at a price of just $770, but it rallied to nearly $20,000 in late 2017. The bitcoin rally has run out of steam so far in 2018, with the price falling 33.8 percent year-to-date to below $10,000. The Bitcoin Investment Trust (OTC:GBTC) is down 29.6 percent year-to-date.

Cryptocurrency remains one of the most divisive topics on Wall Street, and Buffett has repeatedly made clear on which side of the debate he falls.

Related Links:

Today In Cryptocurrency: CoinDesk Career Center, New JPMorgan Patents

A Guide To Who Loves And Hates Cryptocurrency

Related Articles

Cathie Wood Sells Another $35.7M Worth Of Square Stock And Loads Up $25.8M In Coinbase

Cathie Wood-led Ark Investment Management sold another 140,682 shares of the payments company Square Inc (NYSE: SQ), estimated to be worth $35.7 million as of Tuesday's close, as it looks to rebalance its portfolio. read more

These Big Money Players Have Put Bitcoin On The Balance Sheet

The rise in acceptance of Bitcoin (CRYPTO: BTC) as a major store of value and payment option has been influenced by major corporations adding the cryptocurrency  to put a portion of its cash reserves into cryptocurrency. Benzinga could earn up to 6% per annum on its crypto holdings. read more

BitTorrent Cryptocurrency Surges 197% As It Becomes Next Pump Target After Dogecoin: What You Need To Know

BitTorrent (BTT) cryptocurrency has skyrocketed 197% over 24 hours and 295% over a seven day period leading to press time at $0.0015 on Tuesday. read more

This Week In Cryptocurrency: Yale Invests In Crypto, Coinbase's $8B Valuation

The cryptocurrency market finished a difficult week on a low note on Friday, with most major currencies trading down on the day. Here’s a look at some of the headlines that were moving the cryptocurrency market this week and which currencies were on the move. read more