Warren Buffett is continuing to give his negative view of cryptocurrencies. According to CNBC, during the 2018 Berkshire Hathaway’s annual shareholders’ meeting, Buffett reiterated his idea that crypto will come to a painful ending adding that Bitcoin is “probably rat poison squared”.
An attendee of the annual general meeting from Ukraine sought Buffett’s views on crypto and the Oracle Of Omaha took the opportunity to take aim. Buffett claimed that Bitcoin is not a productive asset compared to land or corporate shares. He argued that investor demand is the only price determining factor, making digital currency a handy tool for charlatans.
The multi-billionaire investor argued that cryptocurrency community is in for a bad ending after the euphoria wears off.
Warren Buffett was not the only investor who had a negative view of cryptocurrencies at the meeting. Berkshire Hathaway’s Vice Chairman Charlie Munger echoed Buffet’s criticism of cryptocurrency investment, although in much harsher terms. Munger told the investors,
Someone else is trading turds and you decide I can’t be left out,
The harsh criticism by Munger did not end there. He argued that trading or investing in cryptos is ‘just dementia’.
A String of Negative Views
In an interview with CNBC in January, Buffett warned investors about the craze over Bitcoin and other cryptos. He argued that cryptos are not good investments as they are not sustainable.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” the chairman and CEO of Berkshire Hathaway said. “If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth”.
In a similar manner, the Berkshire Hathaway vice chair argued in February that Bitcoin was totally asinine, saying that people get involved in crypto because everyone wants easy money.
Cointelegraph argues that the 87-year-old Buffett is known for his scepticism towards cryptocurrencies. The billionaire investor has made repeated statements claiming that Bitcoin is neither a currency, nor a way of investing. In October 2017, Buffet claimed that Bitcoin had entered the bubble territory, and was going to implode.
However, it is worth noting that this is not the first time that the billionaire investor has criticized a developing concept or company. During the same 2018 annual shareholders meeting, Buffett said that he was wrong on his views about Amazon and Google and regretted not investing in the two corporate giants. He argued that he underestimated Amazon’s ability to disrupt retail and cloud computing at such a rapid pace. Buffett said.
I had very very very high opinion of Amazon’s CEO Jeff Bezos’ ability when I first met him, and I underestimated him,
Image Credit: CNBC
Do you think Warren Buffett is right or wrong in his views about Bitcoin and crypto? Let us know in the comments section?