One of the most famous investors in financial history has once again revealed his feelings about a certain digital currency. In an interview Monday on CNBC’s talk program, Squawk Box, the legendary US investor, Warren Buffett, called Bitcoin (BTC) a “gambling token.” He mentioned that many people invest in it to make money easily and effortlessly. However, trying to get rich in a short time hides its dangers.
Buffett highlighted that BTC doesn’t have any intrinsic value. Therefore, BTC and other crypto assets are comparable to gambling activities such as slot machines and roulette, he said. At the same time, he admitted that this fact can not stop investors. Because people are drawn to success stories and the excitement of potential wins.
Buffett argued that the majority of people prefer to buy BTC just to see its future value expansion.
“Bitcoin is a gambling token, and it doesn’t have any intrinsic value. But that doesn’t stop people from wanting to play the roulette wheel.”
It’s not the first time he has criticized BTC. He has previously labeled it as a “delusion.” Interestingly, Buffett’s review comes at a time when Bitcoin is performing brilliantly.
Buffett’s Right-Hand Expresses The Same Thoughts About Bitcoin
Charlie Munger has emerged as another prominent opponent of the cryptocurrency industry. Munger is the vice chairman of Omaha-based holding company, Berkshire Hathaway Inc. The owner of the holding company is Warren Buffett.
In 2021, Charlie Munger wished cryptocurrencies had never been invented. He warned people to stay away from the volatile crypto market. He warned people to stay away from the volatile crypto market, describing it as an “open sewer, full of malicious creatures.” Also, earlier this year Monger called for the US to follow in China’s footsteps and ban the crypto industry.
In addition, Munger described BTC as an asset that encourages kidnapping, child prostitution, and other crimes. Some believe that Munger and Buffett started such a feud. Investors said that the two either don’t understand the industry or are at a stage in their careers where it’s too late for changes. Munger claimed in an opinion piece for the Wall Street Journal:
“It’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity.”
Bitcoin tops the list of crypto assets as it has gained more than 80% this year. Despite his criticism of the digital asset, Bitcoin continues to attract investors and generate significant profits. Investors should be cautious when diving into the crypto space. Because Bitcoin and other crypto assets are highly speculative and volatile.