It was already widely known that the legendary investor Warren Buffett is not a fan of Bitcoin and cryptocurrency in general, but the chairman and CEO of Berkshire Hathaway has now amped up his rhetoric. When asked about the comments of his longtime friend and Berkshire Hathaway vice chairman Charlie Munger, who called Bitcoin “rat poison” in the past, Buffett said that Bitcoin is now probably “rat poison squared”, and stated that the asset itself is creating nothing. He believes BTC is purely speculative, and that Bitcoin investors are merely playing a “greater fool” game, simply hoping to pass their coins to someone else at a higher price. On CNBC’s Squawk Box, Buffett said the following:
“When you’re buying nonproductive assets, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along.”
Charlie Munger is particularly opposed to cryptocurrency, going so far as saying it is immoral and “worthless, artificial gold”. He did say that blockchain is an impressive feat of computer science – he was impressed by the fact that cryptocurrencies found a way to create something that is scarce and replicable at the same time, but said that cryptocurrency serves no social purpose. He continued to state that applications such as WeChat already perform the same task as crypto but more efficiently.
The Berkshire Hathaway Bitcoin bashing trio was completed by Bill Gates (he is on their board of directors), who said that he would short Bitcoin if he had an easy way to do so. As we all know, there most definitely is an easy way to short Bitcoin for United States investors, and notable Bitcoin bull Tyler Winklevoss dared Gates to put his money where his mouth is:
Dear @BillGates there is an easy way to short bitcoin. You can short #XBT, the @CBOE Bitcoin (USD) Futures contract, and put your money where your mouth is! cc @CNBC @WarrenBuffett https://t.co/4JIhF5vWsZ
— Tyler Winklevoss (@tylerwinklevoss) May 7, 2018