Warren Buffett Warns of Negative Outcome for Bitcoin – Is it a Risky Investment?
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Ranked sixth on Forbes’ Real-Time Billionaires List, Warren Buffett, co-founder, chairman and CEO of Berkshire Hathaway, serves as a prime example of an investor who adhered to his core financial principles early in life, emerging as a success and an enduring inspiration to those who have followed his path.
Buffett, aged 93, is renowned as one of the most reliable investors over the years. He openly shares his investment philosophy, which focuses on value investing, acquiring stocks below their intrinsic value, and retaining them for the long haul.
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Buffet is unreserved in his critique of investments he deems worthless. And one of those is Bitcoin.
Buffett’s Opinion on Bitcoin
Throughout the last decade, Buffett has made his aversion to the crypto craze evident. In 2018, he likened Bitcoin to “probably rat poison squared.”
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” remarked Buffett in 2018, a sentiment he has maintained. According to Benzinga, he contends that cryptocurrencies are not a viable or valuable investment.
“Now if you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything,” Buffett stated at the 2022 Berkshire Hathaway annual shareholder meeting.
Despite Buffett’s reservations about this volatile investment, does this signify that crypto is destined to fail as an investment? Not necessarily.
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Is Buffett Mistaken About Bitcoin?
Supporters of Bitcoin argue that, notwithstanding being non-governmental, cryptocurrency is as fungible, divisible, secure, and portable as fiat currency and gold. Due to their digital nature, cryptocurrencies are decentralized, scarce, and durable, capable of being stored indefinitely.
Proponents of crypto continue to forecast substantial growth in the coin’s value. Anthony Scaramucci, founder of SkyBridge Capital and former White House director of communications, predicted to reporters earlier this year that Bitcoin could surpass $170,000 by mid-2025, while Ark Invest CEO Cathie Wood anticipates Bitcoin reaching $1.48 million by 2030, as reported by Fortune.
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“They really don’t understand the concept and the whole history of money,” Scaramucci remarked about critics of crypto like Buffett on a recent episode of “The Raz Report” hosted by Jason Raznick. As we assign a value to “conventional” currency, it essentially becomes worthless compared to the transparent and reliable digital Bitcoin, according to Scaramucci.
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