There is not any doubt in the cryptocurrency industry, regarding the way that Warren Buffett feels about Bitcoin, or “rat poison squared,” as he calls it. After the recent annual meeting of Berkshire Hathaway, Buffett practically doubled down on his statements, saying that the cryptocurrency is “a gambling device,” bringing attention to the many scams in which Bitcoin has played a role. Buffett even implied that Bitcoin is useless, considering that it “doesn’t do anything” and “hasn’t produced anything.”
Reported by CNBC, Buffett took the opportunity to put on a show, adding that he would pull a button off of his jacket, using it to symbolize Bitcoin as a token. He told the reporter that he would offer it at a price of $1,000, and he’d try to increase its value by twice over, pointing out that the button, much like Bitcoin, “has one use” which is “limited.”
Charlie Munger, the vice chairman of Berkshire, also made comments at the meeting, saying that the process of actually trading cryptocurrencies is “just dementia.” However, Bitcoin is having a relatively good year so far, priced at $5,814.78 at the time of this article and up nearly 55% on the year to date.
While it is clear that Buffett is still not a fan of Bitcoin, the same cannot be said of blockchain. He pointed out that the creation of the fintech “didn’t need Bitcoin.” He added that major financial institution JPMorgan Chase has already developed a cryptocurrency, though the use of this term has irritated some of the community, since the JPM Coin does not fall in line with the traits of other cryptocurrencies.
There have already been multiple industries to test out blockchain’s function as a separate entity from cryptocurrency, suggesting that there’s a possibility that Buffett could be half-right. However, Wences Casares, who is a pioneer of blockchain technology, has stated before that the belief in blockchain technology as a completely separate entity from Bitcoin show “ignorance for how the system works.” He added that there is no blockchain without Bitcoin, because it would eradicate miners to remove Bitcoin. Without miners, there is no blockchain to uphold.
Discussing the potential for Buffett to get involved with blockchain, he commented that his firm may already be participating in the tech “indirectly.” However, he does not see himself as someone who will become a “big leader” in this part of the sector.