Warren Buffett still doesn’t get Bitcoin, and he’s not a fan. He does see the value in using blockchain technology however. These admissions came in a February 25 interview with CNBC’s Becky Quick.
The CEO of multi-billion dollar holding firm Berkshire Hathaway said that fans of Bitcoin were suffering “a delusion.” The sticking point for Buffett appears to be in the practical uses of crypto, of which he sees are none. “It doesn’t produce anything, you can stare at it all day and no little bitcoins come out or anything like that,” he said.
He did concede however that the design of Bitcoin itself was “ingenious,” but ultimately implied that those were getting excited about cryptocurrency were getting their hopes up for nothing. In a brief mention of blockchain technology, he said it can function without Bitcoin, implying he sees value in the underlying tech.
Not to be too cruel to crypto fans, he concluded saying, “I’m sympathetic to people that own it.” When the host noted that he previously called Bitcoin “rat poison squared,” and pointed out that maybe he was starting to soften on the crypto, Buffett replied, “Who knows where we’ll be next year.”
Perhaps part of the issue is that Buffett hasn’t taken the time to really understand what Bitcoin is trying to do. In the interview, he admits that he got into the investing game in 1951, and a big part of his success came from researching data that others wouldn’t bother looking at. He then admits that he has people tell him about Bitcoin and blockchain technology, rather than looking into it himself. That sounds like a knowledge gap on his part.
If he were to look into it, he might discover that Satoshi’s original vision, now followed by Bitcoin SV (BSV) was just as much about economic theory as it was technology. Bitcoin is not just a new technology to produce goods from, it’s intended to be the world’s new money. Its limited supply is a feature, not a bug. Those who believe in the vision of Bitcoin, and thus BSV, expect it to change business models and economies. Buffett seems to miss that mark.
That might be expected though. Berkshire Hathaway owns companies like Dairy Queen and Fruit of the Loom. Those companies make products that are a bit easier to understand.
Buffett spoke out just days after Max Keiser called out Buffett for being an “unmitigated fraud” for his stance on Bitcoin. In that crypto enthusiast’s opinion, Buffett is a success for being cozy with Wall Street and the government in ways that others could only dream of, not because he’s necessarily right.
New to Bitcoin? Check out CoinGeek’s Bitcoin for Beginners section, the ultimate resource guide to learn more about Bitcoin—as originally envisioned by Satoshi Nakamoto—and blockchain.