This billionaire sees lots of value, but thinks the price is in a bubble

what warren buffett says about bitcoin

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. Sign up for free newsletters and get more CNBC delivered to your inbox.

Get this delivered to your inbox, and more info about our products and services. Privacy Policy. All Rights Reserved. Data also provided by. Skip Navigation. Markets Pre-Markets U. Key Points. Billionaire investor Warren Buffett says he sees "no unique value" in the world's largest cryptocurrency.

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what warren buffett says about bitcoin

What Buffett has said about bitcoin and other cryptocurrencies in the past

Warren Buffett 's aversion to bitcoin just escalated. There's been disappearances, so there's a lot lost on it. It just sits. It's like a seashell or something, and that is not an investment to me," he added. What I'll have here is a little bufftt But the button has one use and it's a very limited use," Buffett said.

Buffett has made some negative remarks about bitcoin in the past, and he just renewed his criticism.

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. 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 them. 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 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 there. It's like a seashell or something, and that is not an investment to me," Buffett said.

Here's what Mark Cuban, Warren Buffett, and Richard Branson have to say about the digital currency.

Here's what he said about the cryptocurrency boom and why he won't short bitcoin despite his botcoin outlook. Buffett told CNBC in a recent interview that the cryptocurrency mania around the world isn't going to have a happy ending.

He doesn't know when it will happen or what will trigger a collapse, but he's quite sayss that the ultimate direction of all cryptocurrencies is. Berkshire's vice chairman, Charlie Munger, is equally pessimistic on cryptocurrencies. Inhe said that bitcoin is " total insanity ," and in the same CNBC interview where Buffett made his sas, Munger said that investors "are excited because things are going up at the moment and it sounds vaguely modern.

But I'm not excited. Although Buffett has a negative outlook for cryptocurrencies, you won't see him shorting them anytime soon. The recent introduction of bitcoin futures allows traders to bet against the leading digital currency for the first time, and while it may seem like a no-brainer for a bitcoin bear like Buffett, it's far too dangerous.

Simple put, the reward potential doesn't justify the risk, especially for an asset whwt is as volatile as bitcoin. On the other hand, the loss potential is unlimited. I've said that what warren buffett says about bitcoin the right circumstances, bitcoin butcoin get much higher.

To be perfectly clear, I never suggest basing any investment decision on what a billionaire says or does, even if that billionaire is Warren Buffett. Having said that, even if you disagree and think what warren buffett says about bitcoin cryptocurrencies are just getting started, it's important to pay attention to his wisdom in his comments. In particular, his comments about not knowing anything about bitcoin is a good lesson to learn. It's easy enough to lose money investing in the abokt you know.

Buying things you don't know well is a terrible idea, no matter what it is. So, if you're going to put some money into bitcoin, another cryptocurrency, or an ICO, be sure aboutt you fully understand what you're getting. Also, if you agree with Buffett, that doesn't mean shorting bitcoin futures, or bitcoin-related stocks for that matter, is a good idea.

Even if you short a relatively small position, bitcoin's wbat is so uncertain that your losses on a short position can become catastrophic in a brief period of time. The bottom line is that bitcoin and other cryptocurrencies are highly speculative assets and should not be considered "investments" in the long term sense of the word.

You shouldn't bet your future what warren buffett says about bitcoin security on anything, and cryptocurrencies are no exception. Bufvett 10, at PM. Matt specializes in writing about bank stocks, REITs, and personal finance, but he loves any investment at the right price. Follow him on Twitter to keep up with his latest work! Image source: The Motley Hitcoin. Stock Advisor launched in February of Join Stock Advisor.

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Buffett has made some negative remarks about bitcoin in the past, and he just renewed his criticism.

CNNMoney Sponsors. While I never recommend buying or not buying an investment simply because of what a billionaire says, it can be a smart idea to listen to what some of the most successful people in the world have to say. Theron Mohamed. Buffett has been a long-time critic of cryptocurrency. The billionaire felt that this was further proof of his point, and tweeted a few hours later: "You know it's a bubble when a random twitter thread bounces the price. News Tips Got a confidential news tip? Outcome: If Buffett had to pick one forecast to undershoot, he would probably choose this one. He called bitcoin "probably rat poison squared," ahead of the Berkshire Hathaway annual shareholder meeting. In an interview before What warren buffett says about bitcoin annual meeting, Buffett called bitcoin "a gambling device" and also pointed out that there's been lots of fraudulent activity in the bitcoin world. Outcome: Buffett has argued for years that index funds offer better returns to investors than stock-pickers, as they provide exposure to a broad range of stocks and charge fewer fees. Buffett was right about a recovery in housing and employment. He posted the above prediction on Long Betsa website for making long-term wagers and nominating charities to receive the winnings.

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