Renowned investor Warren Buffett has once again expressed his skepticism towards cryptocurrencies, comparing them to gambling. Speaking to CNBC’s Squawk Box on April 12, Buffett said that there has been an “explosion of gambling” in the cryptocurrency market, drawing parallels to roulette, sports booking, and chain letters. Although this is not a new stance for Buffett, who has been known to downplay the value of Bitcoin (BTC) and cryptocurrencies, his recent comments represent a slight softening of his stance.
In a 2014 interview with Squawk Box, Buffett referred to Bitcoin as “a mirage” and claimed that it had no intrinsic value. He also speculated on the longevity of Bitcoin, stating that he would not be surprised if it was not around in 10 or 20 years. At the time, he also argued that Bitcoin could not be considered a currency as it was inevitably based on the value of the dollar. In a January 2018 interview, Buffett doubled down on fellow Berkshire Hathaway vice chairman Charlie Munger’s assertion that Bitcoin was “rat poison” by saying that it was “probably rat poison squared.”
Buffett’s recent interview with CNBC saw him liken Bitcoin to gambling and predict that it would be difficult to predict when the gambling instinct would go away. He drew a comparison to snail mail chain letters and argued that Bitcoin users were essentially placing bets with their income. Despite his skepticism, Buffett’s own investment group, Berkshire Hathaway, has not been immune to losses related to the recent banking crisis. As of March, Bitcoin had outpaced the stock of Berkshire Hathaway by a significant margin.
While Buffett’s comments will not be welcomed by cryptocurrency enthusiasts, it is important to note that his opinions are just that – opinions. The cryptocurrency market has continued to grow and evolve despite the skepticism of some of the world’s most prominent investors. As with any investment, it is important to do your own research and make informed decisions.
In the end, the cryptocurrency market remains an exciting and dynamic space, with plenty of potential for growth and innovation. While Buffett’s comments may give some investors pause, they should not be taken as the final word on the subject. As with any investment, it is important to consider a variety of factors and make informed decisions based on your own risk tolerance and investment goals.