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Billionaire investor Warren Buffett is doubling down on his bitcoin criticism. The Berkshire Hathaway CEO said he is sympathetic to optimists who bought the world's largest cryptocurrency in hopes that "it would change their lives. Buffett has been a long-time critic of cryptocurrency. He called bitcoin "probably rat poison squared," ahead of the Berkshire Hathaway annual shareholder meeting.
In the interview Monday, he did point to potential in bitcoin's "important" underlying technology blockchain but said its success does not depend on cryptocurrency. Buffett is not alone in his skepticism. Business leaders including Bill Gates, economists Nouriel Roubini and Robert Shiller, and fund managers Ray Dalio and Howard Marks are among those who have questioned bitcoin's legitimacy.
Yet earlier this month, J. Morgan became the first major bank to launch its own proprietary cryptocurrency for cross-border payments.
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Billionaire investor Warren Buffett said Wednesday that he would never invest in Bitcoin or other cryptocurrencies, and predicted the wildly popular assets are in for a fall. Bitcoin buffe the first, and the biggest, 'cryptocurrency' — a decentralised tradeable digital asset. That means it has attracted a range of backers, from libertarian monetarists who enjoy the idea of a currency with no inflation and no central bank, to drug dealers who like the fact that it is hard but not impossible to trace a bitcoin transaction back to a physical person. The exchange rate has been saye, making it a risky investment. Whether it is a bad investment is yet to be seen.
What Buffett has said about bitcoin and other cryptocurrencies in the past
For the latest business news and markets data, please visit CNN Business. The price of bitcoin took a dive after Warren Buffett renewed his criticism of the cryptocurrency — even comparing it to rat poison. He has often compared the cryptocurrency to gold, saying that both assets are strictly speculative and don't produce earnings and dividends like stocks do. Related: Warren Buffett is not too worried about a trade war. During the meeting itself, Buffett joked that "if you had bought gold at the time of Christ and you figure the compound rate on it, it's a couple tenths of a percent. He also responded to a question from the audience about bitcoin by saying that it and other crytpocurrencies "will come to bad endings.
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Warren Buffett isn't a fan of bitcoin. At Berkshire Hathaway's annual meeting, Buffett renewed his criticism about bitcoin and explained why it's not an investable asset. Image source: The Motley Fool. At last year's shareholder meeting, Buffett called bitcoin "probably rat poison squared ," and also said that he thinks cryptocurrencies won't end well for those who buy.
Munger added that trading in cryptocurrencies is "just dementia. Warren Buffett's newest bitcoin comments seem even harsher. In an interview before Berkshire's annual meeting, Buffett called bitcoin "a gambling device" and also pointed out that there's been lots of fraudulent activity in the bitcoin world. He also reiterated that what warren buffet says about bitcoin isn't a productive asset.
That is, its value is based solely on the premise that someone else will eventually be willing to pay more for it. It just sits. It's like a seashell http://trackmyurl.biz/when-did-bitcoin-start-and-what-was-the-price-3407.html something, and that is not an investment to me," Buffett said.
Buffett compared bitcoin to a button on his jacket, saying, "I'll tear off a button. What I'll have here is a little token. But the button has one use and it's a very limited use. In other words, bitcoin has limited real-world usability -- at least for the time. Obviously, don't expect Warren Buffett -- or Berkshire Hathaway, for that matter -- to buy bitcoin anytime soon.
And from an investment standpoint, Buffett certainly makes some good points. It's really difficult to look at bitcoin's price action over the past few years and make a solid what warren buffet says about bitcoin that owning bitcoin isn't highly speculative. Plus, Buffett has a pretty solid track record of pointing out irrational investment markets. In short, while investing in bitcoin isn't a great way to allocate your investable assets in Buffett's view, that doesn't mean that you need to avoid it altogether.
The same logic applies. Investors shouldn't put any money into bitcoin that they aren't prepared to lose. More From The Motley Fool. The Motley Fool has a disclosure policy. No matching results for ''. Tip: Try a valid symbol or a specific company name for relevant results. Finance Home. Markets open in 4 hrs 26 mins. Motley Fool May 6, Warren Buffett smiling.
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