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Warren Buffett slams crypto citing lack of tangible value

Updated: Aug 31, 2024
Published: May 2, 2022
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American business magnate, investor, and philanthropist Warren Buffett is dancing to his repetitive Bitcoin criticism tune yet again.

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Warren Buffett would not buy Bitcoin for $25

Berkshire Hathaway CEO Warren Buffett said that he cannot invest in crypto because they lack intrinsic value. While speaking at the Berkshire Hathaway Annual Shareholder meeting, Buffett delivered the most expansive explanation of why he does not believe in cryptocurrencies. 

While there are tons of digital assets with unique use cases like underlying products, lending, or collateral, Buffett believes they "don't produce anything." He said:

"It's got a magic to it and people have attached magics to lots of things."
He rationalized Bitcoin's lack of tangible value and referred to agriculture and real estate for having considerable tangible returns. He stressed that even if he is offered all the Bitcoin for a low price like $25, he won't take it as it lacks utility.

Despite the CEO's comment that bashes digital assets, his company Berkshire Hathaway recently invested $1 billion in a pro-crypto Brazilian Bank that offers Bitcoin ETF, Nubank.

Twitter floods with opposition

Buffett has maintained a critical stance toward Bitcoin throughout the years, referring to the top-ranked digital currency as "rat poison" at one time. On the other hand, Buffett's assistant Charlie Munger called Bitcoin "stupid" and said its "evil" characteristics make America look terrible. Munger has also praised China's ban on crypto mining and trade.

According to MicroStrategy CEO Michael Saylor, the asset's continuing attack will act as a marketing strategy. 

The co-founder of American venture capital firm Andreessen Horowitz (a16z), Marc Andreessen, called Buffett's comments "wild." Tesla CEO and the richest man on the planet, Elon Musk, commented that the 91-year billionaire used Bitcoin so many times in his speech.

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