SNEAK PEEK
- Despite Bitcoin’s recent price surge, Warren Buffet doesn’t find much value in the cryptocurrency.
- Considering Bitcoin’s popularity, Buffett doesn’t blame people for their desire to play the roulette wheel.
- Similar to Buffet, Berkshire Vice Chairman Charlie Munger is also against Bitcoin and said that it should be banned in the U.S.
Bitcoin is consistently setting new 10-month highs in its appreciable run-up to begin 2023. Even after escaping $30,600 recently and marking its highest level since June 8, the cryptocurrency isn’t able to impress all investment gurus.
For instance, the crypto is considered nothing beyond a gambling token by billionaire investor Warren Buffett.
Repeating his stern view about the cryptocurrency that he has expressed earlier, Buffett said that Bitcoin lacks any intrinsic value though people are interested in it and in playing the roulette wheel.
As far as gambling is concerned, he mentioned that the urge to take part in something that seems to be easy money is a human nature which has been there always.
Buffett is not a fan of Bitcoin in any way and called it “probably rat poison squared” in 2018.
Charlie Munger, his top deputy, Berkshire Hathaway Vice Chairman, is one step ahead when it comes to expressing his disliking for crypto during the years. Earlier in 2023, he called for the U.S. to ban it.
In an opinion piece for the Wall Street Journal, Munger wrote that a cryptocurrency is neither a currency nor a commodity or a security. In fact, it is a gambling contract with over 100% edge for the house that has entered inside a country where contracts related to gambling are traditionally regulated exclusively by states that compete in negligence.
He further wrote that the U.S. should approve a new federal law to refrain it from happening.
Furthermore, Munger was quite direct at the Daily Journal Corporation’s annual shareholders meeting in February, where he called Bitcoin worthless. He added that at times he calls it “crappo” and sometimes he calls it “crypto s—.”
He believes that those who do not agree with him are idiots. However, many investors admire Bitcoin and swear by its potential since the world’s largest cryptocurrency has jumped over 85% in 2023. Moreover, its use cases growing overseas adoption can’t be underestimated too.
