Warren Buffett, the successful finance mogul and CEO of Berkshire Hathaway, recently shared his thoughts on bitcoin during an interview on CNBC’s Squawk Box on April 12. He reiterated his past comments and likened bitcoin to gambling and chain letters from his childhood. He warned against making a living by trying to bet against the house and described bitcoin as a “gambling token” that doesn’t have any intrinsic value. However, Buffett did acknowledge that people are still attracted to playing the roulette wheel, even though it’s a gamble.
The Oracle of Omaha also made a connection between the rise in gambling and the stimulus checks that people received during the pandemic. With millions of people stuck at home and receiving money, Buffett believes that many people discovered they could have a roulette wheel in their own house. He noted that while he likes to bet on football games, he wouldn’t want to make a living by betting against the house.
Buffett also compared bitcoin to chain letters, which were messages that were once commonly sent through the mail encouraging the recipient to forward the message to a certain number of people, promising a benefit in return. He didn’t like chain letters as a child and questioned why he should forward a message when he could start his own. In the same way, Buffett doesn’t see any intrinsic value in bitcoin and warns against investing in it.
Despite his dislike for bitcoin, Buffett is known for his investing prowess and has made several successful investments throughout his career. Berkshire Hathaway owns many well-known businesses, and the company is listed as the eighth-largest market capitalization in terms of assets in the world. Meanwhile, bitcoin is the tenth-largest market valuation worldwide.
Warren Buffett remains steadfast in his opinion on bitcoin, likening it to gambling and chain letters from his childhood. While he warns against investing in it, he acknowledges that people are still drawn to playing the roulette wheel. Regardless of his opinion on bitcoin, Buffett’s investment track record speaks for itself, and Berkshire Hathaway remains a dominant force in the business world.
