Veteran American investor and longtime critic of cryptocurrencies Warren Buffett has once again attacked bitcoin, claiming that it is a gambling coin and has no intrinsic value.
during wednesday Interview With CNBC’s Squawk Box, the CEO and chairman of Berkshire Hathaway labeled bitcoin a “gambling token.”
He claimed that people go after bitcoin in search of “easy money”, warning that the pursuit of getting rich in a short amount of time comes with serious risks.
“Bitcoin is a gambling token, and has no intrinsic value. But that doesn’t stop people from playing the roulette wheel.
He said that people are attracted to cryptocurrencies because “the urge to participate in what looks like easy money is a human instinct that was always there.”
On the other hand, the Oracle of Omaha, a nickname he earned as one of the world’s most successful and close-minded investors, said he doesn’t fall for get-rich-quick schemes. “I’ve always wanted to get rich slowly and I’m having a lot of fun along the way.”
Contrary to Buffett’s stance, bitcoin and the broader crypto market have experienced a massive boom recently.
The leading cryptocurrency is up over 80% YTD. The coin is currently trading above the $30,000 mark, up 25% over the past month.
In fact, Shark Tank star Kevin O’Leary recently… revealed Bitcoin has been its best-performing holding so far this year, followed by other altcoins, including Polygon’s Matic.
Crypto prices have soared this year after BTC crashed 65% in 2022 in the wake of some high-profile collapses of crypto projects and hedge funds, including the implosion of FTX, the third largest crypto exchange in the world.
Experts hit back against Buffett for criticizing crypto
Buffett is known for his anti-crypto stance. In the past, the famous investor has called bitcoin a “rat poison class” and an “illusion”.
In May 2022, Business Magnate announced that he would not buy all the bitcoins in the world even for just $25.
Buffett said, “If you … owned all the bitcoin in the world and you offered it to me for $25, I wouldn’t take it.” “Because what am I going to do with it? I’m going to have to sell it back to you somehow. It’s not going to do anything.
Buffett’s business partner and right-hand man Charlie Munger shares the same outlook. He has compared bitcoin to a “sexual disease” and even called for a ban on the crypto sector.
CNBC anchor Hugh Son in May last year Said Both have no knowledge of blockchain and crypto assets, saying their valuation of bitcoin is “pedestrian”.
Similarly, Mad Money host Jim Cramer called Munger was “out of touch” early last year about the technology underlying crypto, as well as the reality that customers and investors want it.
Skybridge Capital founder Anthony Scaramucci argued last year that Buffett and Munger may not have done their homework, urging investors to ignore those crypto skeptics.
“That’s the kind of traditional finance people who have decided not to do the homework, or maybe they’ve done the homework, and they’ve decided that it’s too big of a change for them at this stage in their careers.”