Warren Buffett dismissed bitcoin as a worthless illusion and “rat poison squared”. Here are his 16 best quotes on cryptocurrencies.

Warren Buffett

Warren BuffettGetty Images / Spencer Platt

  • Warren Buffett has repeatedly criticized bitcoin and other cryptocurrencies as risky and worthless.

  • “I can almost say with certainty that they will come to a bad end,” said the legendary investor.

  • Bitcoin skyrocketed between early 2020 and November 2021, but plummeted 65% in 2022.

Warren Buffett has been a staunch critic of bitcoin in recent years, repeatedly dismissing cryptocurrency as a worthless and risky speculative asset.

Cryptocurrency fans brushed aside the warnings from billionaire investor and CEO of Berkshire Hathaway, taking the price of bitcoin from around $ 7,000 in early 2020 to over $ 64,000 in November 2021. However, the currency plunged by 65. % less than $ 17,000 since the start of 2022.

Here are Buffett’s 16 best quotes on Bitcoin and cryptocurrencies, edited and condensed for clarity:

1. “Cryptocurrencies basically have no value and produce nothing. They don’t reproduce, they can’t send you a check, they can’t do anything and what you hope is someone else will come and pay you have more money for them later, but then that person has the problem. In terms of value: zero “. – CNBC, February 2020

2. “It’s ingenious and the blockchain is important, but bitcoin has no unique value, it doesn’t produce anything. You can stare at it all day and no little bitcoins or anything like that comes in. Basically it’s an illusion.” – CNBC, February 2019

3. “If you and I buy various cryptocurrencies, they won’t multiply. There won’t be a bunch of rabbits sitting there in front of us. They’ll just sit there. And I have to hope next time it turns you on more after I bought it from you. and then I get more excited and I’ll buy it from you. We could sit in the house by ourselves and we could keep driving the price up between us. But at the end of the time there’s a bitcoin sitting there and now we have to find someone else . They come to an end. “- CNBC, May 2018

4. “In terms of cryptocurrencies in general, I can almost say with certainty that they will have a bad end. If I could buy a five-year put on each of the cryptocurrencies, I would be happy to do so, but I would never miss a cent.” – CNBC, January 2018

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5. “Probably squared rat poison.” – Fox Business interview at the 2018 meeting

6. “Basically it’s a mirage. It’s a very effective way to send money and you can do it anonymously and all. A check is also a way to send money. Checks are worth a lot of money just because they can send money. “I hope bitcoin becomes a better way to do this, but you can replicate it in many different ways. The idea that it has enormous intrinsic value is just a joke, from my point of view. “- CNBC, March 2014.

7. “It is not a currency. It does not pass a currency test. I would not be surprised if it is not available in 10 or 20 years. It is not a durable medium of exchange, it is not a store of value. It was very speculative. like Buck Rogers and people buy and sell them because they hope they go up or down just like they did tulip bulbs a long time ago. ” – CNBC, March 2014

8. “A rising price creates more buyers and people think ‘I have to get into this’ and it’s better if they don’t understand it. If you don’t understand it, it excites you a lot more than if you understand it.” – CNBC, May 2018

Read more: “Extremes Are Getting More And More Extreme”: A Wall Street strategist who sounded the alarm before last year’s 35% plunge shows evidence that such a slump is looming

9. “It will feed on itself for a while, sometimes for a long time and sometimes with extraordinary numbers. But they go to bad endings and cryptocurrencies will go to bad endings.” – discuss speculative bubbles at the Berkshire shareholders’ meeting in 2018.

10. “In the next 50 years it will be much better to have productive resources than to own pieces of paper or bitcoin.” – CNBC, March 2014

11. “I have enough problems with things that I think I know something about. Why on earth should I take a long or short position in something I don’t know about? We don’t have to know what cocoa beans are we’re going to do, or cryptocurrencies, we just have to focus on eight or 10 titles. “- CNBC, January 2018

12. “It attracts a lot of charlatans who are trying to create various types of exchanges or whatever it may be. It’s something where people who don’t have a great character see an opportunity to cut out people who are trying to get rich because their the neighbor gets rich by buying this stuff that neither of us understands. It will have a bad end. ” – Shareholders’ meeting 2018

Read more: Michael Saylor has invested over $ 1 billion of MicroStrategy funds in Bitcoin. The CEO of the software turned Bitcoin whale explains why he is making such a massive bet on the digital asset.

13. “Bitcoin has been used to move a fair amount of money illegally. The logical move since the introduction of bitcoin is to go in short suitcases because the money that was carried in suitcases from one country to another – the suitcases probably they will fall in demand. You can consider it as bitcoin’s economic contribution to society. ” – CNBC, February 2020

14. “We don’t own any of them, we’re not short of them. We will never have a position in them.” – CNBC, January 2018

15. “I don’t have bitcoin. I don’t own any cryptocurrency, I will never have it. I can start a Warren currency, maybe I can create one and say there will only be 21 million. You can have it after my death, but you can’t do anything about it if don’t sell it to someone else. ” – CNBC, February 2020

16. “I’m really sorry that this happens because people are hoping that something like this will change their lives.” – CNBC, February 2019

Read more: Cathie Wood’s ARK Invest manages 5 active ETFs that more than doubled in 2020. She and her analysts share their 2021 outlook on the economy, bitcoin and Tesla.

Read the original article on Business Insider

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