Bitcoin (BTC) Has No Unique Value At All, says Warren Buffett
Warren Buffett commented on Bitcoin during a CNBC interview, terming it ingenious but a delusion nevertheless.
Warren Buffett, the CEO of Berkshire Hathaway, has gone on from calling Bitcoin “rat poison squared” to now, a “delusion” while speaking with CNBC’s Becky Quick yesterday.
Buffett’s anti-Bitcoin comments are not new, for instance, him terming it a non-productive asset which would have a bad ending - however, during yesterday’s talk, he seemed more accepting of the ingenuity behind the digital asset, but was still not buying the notion of Bitcoin having any value.
“It’s ingenious and blockchain is important but bitcoin has no unique value at all. It doesn’t produce anything, you can stare at it all day and no little bitcoins come out or anything like that,” said Buffett, adding that “it’s a delusion, basically”.
The veteran investor then went on to sympathize with people who, according to him, hope that Bitcoin and the likes can change their lives, only to, impliedly, fall for the delusion:
“I am really sorry this happens, because people get their hopes up that something like that is going to change their lives and it’s a very ingenious thing to figure out how to have a limited supply and make it harder and more expensive to create them as you go along and all that sort of thing but...blockchain does not depend on bitcoin...I am sympathetic to people who own it.”
Giving the example of JP Morgan’s digital currency, JPM Coin, Buffett validated his point that blockchain does not depend on Bitcoin.
JPM Coin is essentially a stablecoin launched by JP Morgan and is backed by the U.S. dollar in a 1:1 ratio. However, it is not available for retail users and is issued on a private, permissioned blockchain, managed by the bank, and its only utility is to transfer value among JP Morgan’s clients.
That being said, Buffett did concede that his stance on Bitcoin had shifted ever so slightly, and
“who knows where we will be next year”.