Warren Buffett doesn’t mince his words when it comes to giving his opinion about Bitcoin. The Oracle of Omaha once again blasted Bitcoin today on CNBC, calling the pioneer cryptocurrency a “gambling token” without any intrinsic value.
Buffett Says Bitcoin Is A “Gambling Token”
Warren Buffett, one of the world’s richest men, is again going after Bitcoin.
Speaking in an interview with CNBC’s Squawk Box this morning, the Berkshire Hathaway CEO and chairman labelled bitcoin a “gambling token” that possesses no intrinsic value.
Buffett further compared Bitcoin and the broader crypto market to gambling activities like the roulette wheel and slot machines. He posited that people are drawn to crypto because the “urge to participate in something that looks like easy money is a human instinct which was always there.”
“People like to play the lottery,” says Warren Buffett on the crypto craze. “It’s appealing to the gambling instinct. We’ve had an explosion of gambling.” pic.twitter.com/pjNEKdNgr1
— Squawk Box (@SquawkCNBC) April 12, 2023
Continuing with his gambling analogy, Buffett also suggested that bitcoin holders were basically placing bets with their hard-earned income. “You had millions of people that were getting checks and the money and sitting home and finding out that they could have a roulette wheel in their house.”
According to the crypto-sceptic, the hype around Bitcoin, fueled by the fear of missing out, leads people to make wrong investment decisions. He stated that he had no idea how to change this trend. “I don’t know how to turn back the clock on that,” he explained.
A History Of Bitcoin Bashing
The 92-year-old legendary investor is no stranger to slamming Bitcoin. In the past, Buffett has infamously called bitcoin “rat poison squared” and a “delusion”. He also frequently warns investors against investing in the volatile crypto asset. In May 2022, the famed business magnate declared that he would not buy all the bitcoin in the world even for just $25.
Meanwhile, Buffett’s business partner Charlie Munger has had more harsh words for the benchmark cryptocurrency over the years. Early last year, Munger likened Bitcoin to a “venereal disease”, adding that it doesn’t like the crypto because it’s used by extortionists, tax evaders, terrorists, and all other kinds of criminals you can think of.
Munger also praised China for banning cryptocurrencies and called for the United States to follow in the footsteps of Xi Jinping and make “the correct decision” which is to simply ban them.
Notably, bitcoin has outshined Berkshire Hathaway for the past six or so months as investors remain optimistic about the cryptocurrency’s future prospects. Safe to say Buffett and his right-hand man Munger are on the losing side of the bet.
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