Buffett Still Bearish On Bitcoin: 'The Asset Itself Is Creating Nothing'
|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 GBTC 3.4% 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.
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