Buffet Calls Cryptocurrencies “Rat Poison”

As reported by Hedge Fund Alpha, Warren Buffet has repeatedly advised investors not to buy cryptocurrencies, explaining that it doesn’t product anything. In fact, Buffet has even described bitcoin as rat poison. According to him, the fear of missing out on crypto with the uncertain trajectory of its future potential caused a whirlwind of excitement around it.

His long-time partner, the late Charlie Munger called crypto trading dementia. He went so far as to call the United States Government to ban crypto altogether, just like China did. Munger explained that crypto is not a currency, a commodity, or a security, and he compared it to a gambling contract.

Munger also often referred to crypto as crappo, and called it worthless, which can also be often heard from Buffett. He also called people who don’t share his viewpoint as “idiots” because there is no rational argument against his position.

In 2018 Buffett gave his assessment that the crypto hype will end badly for investors and warned everybody about that possible route. He said that he wouldn’t buy all the crypto in the world for $25. He noted that crypto doesn’t have an intrinsic value.

On another occasion, when the bitcoin value reached $30 thousand, he called it a “gambling token”. He understands that people often want to invest in something that can bring a lot of money quickly, but it usually doesn’t end the way they intended.

In April 2023 when Ethereum and Bitcoin were up 35% and 61% Buffett repeated that crypto doesn’t have real value, but that it will not stop people from trying to play the roulette wheel.