Warren Buffet Brands Bitcoin a Gambling Asset
- Warren Buffet believes Bitcoin has no intrinsic value.
- Berkshire Hathaway Vice Chairman Charlie Munger has publicly criticized cryptocurrencies.
- Munger urged US regulators to emulate China and ban cryptocurrencies.
Warren Buffett, a multibillionaire investor, called bitcoin (BTC) a “gambling token” in an interview with CNBC on Wednesday. The chairman and CEO of Berkshire Hathaway (BRK.A) reaffirmed his pessimistic view of cryptocurrencies, saying that while Bitcoin “doesn’t have any intrinsic value,” people still want to play the roulette wheel. Buffett, in a statement about gambling in general, noted that “the urge to participate in something that looks like easy money is a human instinct which was always there.”
The crypto market has recently seen a significant surge. According to Messari, bitcoin, and Ethereum are up 61% and 35%, respectively, although they are still about 56% and 36% behind their record highs reached in November 2021.
The 92-year-old Buffet is an open critic of Bitcoin. He once described it as “probably rat poison squared” in 2018. Buffet’s strong opinions about Bitcoin are shared by his longtime colleague and his top deputy, Berkshire Hathaway Vice Chairman Charlie Munger, who has been even more vocal about his dislike of cryptocurrencies. Munger previously demanded that the United States follow China and ban cryptocurrencies.
Munger described cryptocurrencies as a “gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity.”
Michael Saylor, Executive Chairman of MicroStrategy (MSTR), said Munger and other prominent Western business leaders haven’t had the time to research cryptocurrencies, hence their criticism. Saylor remarked that “If [Munger] were a business leader in South America, Africa, or Asia and he spent 100 hours studying the problem, he would be more bullish on bitcoin than I am.”
Despite the slight recovery witnessed in the market, crypto experts believe the mounting regulatory pressure will decide the long-term future of the market.
Lawrence has covered some exciting stories in his career as a journalist, he finds blockchain-related stories very intriguing. He believes Web3 will change the world and wants everyone to be a part of it.
