In an interview just released on CNBC, billionaire financier Warren Buffett reiterated his long-held position that cryptocurrency has no intrinsic value, and made clear that he would never own any. Buffett insisted that Bitcoin serves no real purpose, which is why it has not achieved mainstream use.
WARREN BUFFETT STATES CRYPTOCURRENCY “DOES NOTHING”
The discussion centered on Buffett’s recent dinner with Justin Sun, who paid over USD $4 million for a dinner with Warren Buffett as part of a charity auction. Buffett noted that Sun and his other guests behaved very well, and the conversation was respectful. Nevertheless, Buffett insisted that the Tron founder failed to change his mind in any way on this subject.
The interview has been tweeted by CNBC:
“I don’t own any cryptocurrency. I never will,” Warren Buffett tells @BeckyQuick. #AskWarren https://t.co/0VjIDJSi7L pic.twitter.com/il4cT2hWkP
— CNBC (@CNBC) February 24, 2020
It is worth noting that during the interview Warren Buffett makes a number of references demonstrating that he understands blockchain technology. He clearly understands the idea behind the digital ledger, as well as the fixed supply of Bitcoins. Also, when pressed on the idea that Sun gave Buffet some Bitcoin at the dinner, Buffet became visibly uncomfortable, and reiterated that he did not own any.
BLOCKCHAIN ASSETS REMAIN OUTSIDE LEGACY FINANCE
Buffet’s view on cryptocurrencies has remained consistent, and is unlikely to change. His stance is likely due to the fact that blockchain assets do not fall within the realm of traditional finance. In other words, they are too risky, and too disruptive, to be considered worthy investments.
As perhaps the most successful investor of the modern age, Buffett’s genius is without dispute. Nevertheless, his remarkable success has come from following a very short list of very conservative, simple strategies. He has long avoided new asset classes or highly speculative investment schemes. The fact that Warren Buffett has zero interest in crypto is thus not surprising.
Crypto advocates may deride the argument that Bitcoin has no intrinsic value, yet Buffett’s statement also points to the unresolved, and highly controversial, question of Bitcoin’s long-term status as the top platform. Whereas there is no doubt that that blockchain assets are here to stay, Bitcoin may very well fall out of first place. Buffett clearly understands this fact and has no intention of entering the debate.
Warren Buffett is one of many financial experts from the legacy space that have decided to avoid cryptocurrency. His decision to do so will not stop blockchain development or cryptocurrency investment. Also, his assertion that cryptocurrencies are extremely risky holds true. Thus, perhaps the best move for crypto advocates is to stop trying to change his mind.
What do you make of Warren Buffett’s latest comments on crypto? Add your thoughts below!
Images via Shutterstock, Twitter @CNBC
