With a net worth of over $100 billion dollars and an extensive resume in investment prowess – Warren Buffet is perhaps one of the most iconic investors of our generation.
One of the few billionaires to come from the middle class, Buffett made his fortune by creating his own stock trading strategy, which paved the way for him to become the 7th richest man in the world.
Due to his extreme success, Buffett is seen as a god-like figure in the world of stock markets and investments. To the point of receiving the nickname “Oracle of Omaha”, relating to Warren’s investment insights.
However, when it comes to cryptocurrencies, the CEO of Berkshire Hathaway is not as enthusiastic as stocks. In fact, it is safe to say that Warren Buffett despises cryptocurrencies. In fact, one time the billionaire even referred to Bitcoin as “rat poison”
During the peak of the Cryptocurrency golden rush, throughout 2020 and 2021, the multi-billionaire was one of the few who was not enthusiastic about investing in crypto.
At the time, Buffett even shared a prediction stating Bitcoin would not maintain a stable uprising in the future. Ten months later, however, Bitcoin reached $69,000 during its peak in 2021.
“They will come to a very bad ending,” Buffett told CNBC during an interview in 2018. “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,”
However, after the rush ended and countries began utilizing every rule in the book to fight the post-pandemic inflation, Bitcoin suffered heavy losses. The leading digital asset lost over half its value in 2022, and the total crypto market cap lost $2 trillion.
According to Buffett, cryptocurrency cannot be counted as money, due to the fact that they don’t reproduce any value.
“They don’t reproduce, they can’t mail you a check, they can’t do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person’s got the problem.”
Warren Buffett Assumes He Doesn’t Know Crypto
Despite having very strong feelings against digital assets, the 92-year-old stock master is not afraid to assume that he simply does not understand them.
“I get in enough trouble with things I think I know something about. Why in the world should I take a long or short position in something I don’t know anything about?” He told CNBC, referring to cryptocurrencies.
Buffett also stated that the vast majority of investors don’t know anything about digital assets. Referring to the incoming popularity of Bitcoin due to investors “you get much more excited than if you understand it.”