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Why Warren Buffett Thinks Bitcoin Is a ‘ ' With No Value

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Bitcoin () is one of the most popular and valuable cryptocurrencies in the world, with a capitalization of over $1 trillion as of April . However, not everyone is a fan of the , especially Warren Buffett, the billionaire investor and of Berkshire Hathaway.

In a recent interview with CNBC, Buffett repeated his negative views on Bitcoin, calling it a “gambling token” that has no intrinsic value. He also said that Bitcoin has been involved in many frauds and disappearances, and that it does not produce anything useful.

But why does Buffett have such a harsh on Bitcoin? And what are the arguments for and against his claims? Let's take a closer look at what he said and how some crypto enthusiasts have responded.

Buffett's Criticism of Bitcoin

Buffett has been a vocal critic of Bitcoin for years, often using colorful metaphors to express his disdain. For instance, he has previously called Bitcoin “rat poison squared”, “a mirage”, and “a delusion”. He has also warned investors to stay away from Bitcoin, saying that it attracts charlatans and speculators.

His main argument against Bitcoin is that it has no intrinsic value, meaning that it is not backed by anything tangible or useful. He believes that investments should have some inherent worth, such as producing goods or services, generating cash flow, or having a competitive advantage. He sees Bitcoin as a speculative asset that only derives its value from the demand and supply of the market.

He also questions the utility and of Bitcoin, saying that it has limited use cases and that it is vulnerable to , theft, and . He claims that Bitcoin does not do anything productive, and that it is just a digital token that sits on a spot like a seashell or a button. He also points out that Bitcoin has been associated with many scams and scandals, such as the Mt. Gox , the bust, and the hack.

Crypto Enthusiasts' Response to Buffett

Of course, not everyone agrees with Buffett's views on Bitcoin. Many crypto enthusiasts have challenged his arguments and defended the value and potential of the cryptocurrency. Some of them have even tried to persuade him to change his mind by offering him Bitcoin or inviting him to lunch.

One of the main counterarguments to Buffett's criticism is that Bitcoin does have intrinsic value, but not in the traditional sense. Instead of being based on physical or cash flows, Bitcoin's value comes from its network effects, its scarcity, its decentralization, its censorship-, and its . Crypto supporters argue that Bitcoin is a revolutionary that enables without intermediaries, empowers individuals to control their own money, and provides an alternative to the flawed system.

Another counterargument is that Bitcoin does have utility and security, but not in the conventional way. Instead of being limited by geography or regulation, Bitcoin's utility is global and borderless, allowing anyone with an internet connection to access and use it. Crypto advocates that Bitcoin is more secure than traditional systems, as it relies on cryptography and consensus mechanisms to prevent and manipulation. They also point out that Bitcoin has survived many attacks and challenges over the years, proving its resilience and adaptability.

Buffett's Views on Other Cryptocurrencies

Bitcoin is not the only cryptocurrency that Buffett has criticized. He has also expressed his skepticism and disdain for other digital assets, such as , , and .

For example, he once said that he would never own any Ethereum, the second-largest cryptocurrency by , because he doesn't understand it and doesn't see any value in it. He also dismissed Dogecoin, a meme-inspired cryptocurrency that has gained popularity and celebrity endorsements, as a joke and a fad. He said that Dogecoin has no serious use case and that it is driven by speculation and manipulation.

Moreover, Buffett has questioned the legitimacy and stability of stablecoins, which are cryptocurrencies that are pegged to fiat currencies or other assets. He said that stablecoins are not really stable, and that they are subject to regulatory risks and potential fraud. He warned that stablecoins could pose a threat to the financial system if they become widely used.

Buffett's Praise for Crypto-Related Companies

Despite his negative views on cryptocurrencies, Buffett has not shunned all companies that are involved in the crypto space. In fact, he has invested in some of them or praised their leaders.

For instance, Buffett's Berkshire Hathaway owns shares of PayPal, the online giant that allows its to buy, sell, and hold cryptocurrencies. Buffett has also complimented PayPal's cofounder Peter Thiel, who is a vocal proponent of Bitcoin and other crypto innovations.

Another example is Square, the company that offers crypto services through its Cash App platform. Buffett's Berkshire Hathaway owns shares of Square as well, and Buffett has lauded its CEO Jack Dorsey, who is also the CEO of and a staunch supporter of Bitcoin.

Furthermore, Buffett has expressed his admiration for and Jeff Bezos, two of the most influential entrepreneurs in the world who have shown interest and enthusiasm for cryptocurrencies. Musk, the CEO of and SpaceX, has been a vocal advocate of Dogecoin and has invested $1.5 billion in Bitcoin through Tesla. Bezos, the founder of and Blue Origin, has not publicly endorsed any cryptocurrency, but his company has been exploring ways to integrate into its services.

The Bottom Line

Cryptocurrencies are a controversial topic that elicits strong opinions from both supporters and detractors. Warren Buffett is one of the most prominent critics of the cryptocurrency asset class, calling it a “gambling token” with no value. However, he has also invested in or praised some companies that are related to the crypto space, showing that he is not completely closed-minded about the technology.

What do you think about Buffett's views on cryptocurrencies? Do you agree or disagree with him? Let know in the comments below! 😊

Emily Lee

By Emily Lee

Hi, I’m Emily Lee, a writer at I love to write about technology, culture, and entertainment. I’m always curious about new trends and innovations, and I enjoy sharing my insights and opinions with my readers. I have a degree in journalism from the University of California, Berkeley, and I have worked as a freelance writer for various publications before joining When I’m not writing, I like to read books, watch movies, and play video games. You can follow me on Twitter @emily_lee or email me at

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