Warren Buffet: The Idea that Bitcoin has Value “Is Just a Joke”
Warren Buffett spoke about Bitcoin and its future in one of his frequent visits to his hometown in Omaha, Nebraska.
In his latest visit to his hometown of Omaha, Nebraska, where he hosts a casual event for business students, one of the attendees asked Warren Buffett a question about Bitcoin.
“You can't value bitcoin, because it's not a value-producing asset,” he answered.
According to him, it is impossible to determine how high it will trade for, and there is a “real bubble in that sort of thing”.
As a clarification, Buffett went on to say that cryptocurrencies like Bitcoin are “a very effective way of transmitting money, and you can do it anonymously and all that”, but it doesn’t mean much in the grand scheme of things:
“A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money?” he added.
He finished his statement with a harsher criticism of Bitcoin, saying that the “idea that [it] has some huge intrinsic value is just a joke, in my view”.
His point of view isn’t very shocking to anyone who knows his company—Berkshire Hathaway—and looks through its investment portfolio. Buffett tends to lean towards investing in things that have a sustainable inherent value.
Meanwhile, Bitcoin is surging past the $8,000 mark even after the SegWit2x drama left its future uncertain.
Although there’s no denying that it’s subject to more volatility than most fiat currencies, there’s a lot to be said about its utility in the market as more stores begin to accept payments in the cryptocurrency.
Warren Buffett might not be keen on the idea of pumping capital in Bitcoin’s direction, but other players want a piece of the pie, each for their own reasons.
Goldman Sachs recently came out as an example of a financial company that wishes to get into digital currencies when a spokeswoman for the company stated that they “are exploring how to best serve [their customers] in this space”.