Legendary investor and Berkshire Hathaway CEO Warren Buffett repeated his criticism of Bitcoin (BTC) this morning on CNBC’s Squawk Box.
Buffett called digital currencies “gambling tokens” with no intrinsic value, reiterating his longstanding skepticism about the world’s largest cryptocurrency by market capitalization. Buffett likened bitcoin and other cryptocurrencies to gambling activities such as roulette and slot machines.
He stresses that people can be drawn in by the excitement of a potential victory and the allure of a success story.
He then covers the differences in roulette and slot machine odds, illustrating the psychological aspects that drive people to play these games.
Investing myths suggest that amid sensationalism and the fear of missing out, the hype surrounding cryptocurrencies can lead people to make bad investment decisions. Buffett expressed uncertainty about how to reverse the trend.
In the past, the Oracle of Omaha has called cryptocurrencies “rat poison” and has repeatedly warned investors against putting money into the volatile digital asset.
Despite the growing acceptance of cryptocurrencies in mainstream finance, Buffett remains adamant that the leading cryptocurrency is nothing more than a speculative gamble.
Last year, Buffett’s right-hand man, Charlie Munger, predicted that Bitcoin would most likely drop to zero.
- Warren Buffett in talks with Biden administration to address current banking crisis
- Warren Buffett’s Group Sells Visa and Mastercard Stocks and Invests in Bitcoin-Friendly Bank
According to USA Today