Berkshire Hathaway Chairman and CEO Warren Buffett offered his updated opinion on Bitcoin during a Monday interview with CNBC's Becky Quick. The 88-year-old investment icon described the cryptocurrency as 'ingenious' but also labeled it a 'delusion,' maintaining his long-standing skepticism while admitting a slight upgrade in his assessment.
From 'Rat Poison Squared' to 'Delusion'
Buffett stated that Bitcoin and blockchain technology are important, but Bitcoin itself 'has no unique value at all. It doesn't produce anything. You can stare at it all day, and no little bitcoins come out or anything like that. It's a delusion, basically.' Over the past few years, Buffett has consistently criticized cryptocurrencies. Ahead of Berkshire Hathaway's annual shareholder meeting in 2018, he called Bitcoin 'probably rat poison squared.' He has also used terms such as 'mirage,' 'not a currency,' and 'tulips' to describe the digital asset. Quick noted that the shift from 'rat poison squared' to 'delusion' could be considered an upgrade, and Buffett did not disagree, replying, 'Well, yeah, you know, who knows where we'll be next year.'
Acknowledging Innovation, Rejecting Value
Buffett admitted that the concept of a limited supply and making creation harder and more expensive was 'very ingenious.' He credited people smarter than himself for explaining that blockchain does not depend on Bitcoin. However, he firmly argued that Bitcoin generates nothing and thus holds no intrinsic value. This aligns with his long-held view on gold, which he also considers unproductive. While Buffett now grants Bitcoin some technological novelty, his fundamental stance on its lack of value remains unchanged.
Bitcoin 'Attracts Charlatans'
During the interview, Buffett also criticized Bitcoin for attracting charlatans. 'If you do something phony by going out and selling yo-yos or something, there's no money in it — but when you get into Wall Street, there's huge money,' he told CNBC. This remark highlights his concern that the cryptocurrency space, with its lack of regulation and massive fund flows, becomes a magnet for fraudsters. The comment echoes warnings from financial regulators worldwide.
Other Skeptics in the Spotlight
Buffett is not alone in questioning Bitcoin's legitimacy. The report noted that Bill Gates, economist Nouriel Roubini, Nobel laureate Robert Shiller, hedge fund managers Ray Dalio and Howard Marks, and JPMorgan CEO Jamie Dimon have all publicly expressed doubts. Dimon called Bitcoin a 'fraud' in 2017 but later regretted that statement; his firm recently unveiled plans for a dollar-pegged stablecoin. These evolving attitudes reflect a slow but significant shift in traditional finance's perception of crypto — even as core skepticism persists.
As of February 2019, Bitcoin was trading around $3,800. Buffett's latest comments, while not triggering market turmoil, serve as a reminder that the 'Oracle of Omaha' remains firmly in the anti-crypto camp.