Bitcoin is a "gambling token" according to billionaire Warren Buffett, and here's why
Warren Buffett, a renowned US investor and ardent opponent of cryptocurrencies, has once again attacked Bitcoin, saying it is nothing more than a gambling token with no fundamental value.
The CEO and chairman of Berkshire Hathaway referred to Bitcoin as a "gambling token" in a recent interview with CNBC's Squawk Box.
He asserted that people pursue Bitcoin in search of "easy money," warning that the pursuit of becoming wealthy quickly carries significant hazards.
The "desire to engage in something that appears like easy money is a human inclination that has always been there," he continued, "is a human instinct that draws people to cryptocurrencies."
The Oracle of Omaha, as he is known as one of the most successful and well-respected investors in the world, on the other hand, claimed he is not a believer in get-rich-quick scams.
"I have a lot of fun along the road and I've always wanted to grow rich slowly."
Contrary to Buffett's assertion, the overall crypto market, including Bitcoin, has recently seen a significant rebound.
The top cryptocurrency has increased by almost 80% year to date.
The coin has increased by 25% just in the last month, and is already trading beyond the $30,000 threshold.
In fact, Shark Tank star Kevin O'Leary recently disclosed that Polygon's Matic, another cryptocurrency, and Bitcoin were his top performers so far this year.
The rise in cryptocurrency prices this year follows a 65% drop in BTC prices in 2022 as a result of well-publicized failures of hedge funds and cryptocurrency initiatives, including the collapse of FTX, once the third-largest cryptocurrency exchange in the world.
experts respond to Buffett's criticism on cryptocurrency
Buffett is well known for being anti-crypto. The renowned investor has previously referred to Bitcoin as "rat poison squared" and a "fantasy."
The business tycoon stated in May 2022 that he would not buy all bitcoin, not even for $25.
Buffett declared, "I wouldn't take it if you possessed all of the bitcoin in the world and offered it to me for $25. Why? Because what would I use it for? In any case, I'll have to sell it back to you. It won't accomplish anything.
Charlie Munger, Buffett's right-hand man and business colleague, holds a similar perspective. He has compared Bitcoin to a "venereal cancer" and even called for the cryptocurrency to be outlawed.
Similarly, Jim Cramer, the host of Mad Money, described Munger as "out of touch" in regards to the technology powering cryptocurrency earlier in the year, as well as the fact that customers and investors demand it.
The founder of SkyBridge Capital, Anthony Scaramucci, said last year that Buffett and Munger might not have done their due diligence, advising investors to disregard such cryptocurrency naysayers.
