Warren Buffett Likens Bitcoin to Gambling and Chain Letters in Recent Interview
Finance mogul Warren Buffett, one of the most successful investors in history, discussed bitcoin during an interview on CNBC’s Squawk Box on April 12. As he has done in previous interviews, the business magnate likened bitcoin to a gambling scheme and chain letters he received as a child.
Buffett Shares His Two Cents on Bitcoin, Warns Against Making a Living ‘Trying to Bet Against the House’
It is well known that Warren Buffett does not like bitcoin, and he once said that he wouldn’t buy all the bitcoin (BTC) in the world for $25. Buffett is also known for saying that bitcoin is “probably rat poison squared,” and during an April 12 interview on CNBC’s Squawk Box, he reiterated his distaste for the leading cryptocurrency. During the interview, he summarized bitcoin as a “gambling token,” and he insisted that the world has seen an “explosion of gambling.”
The Oracle of Omaha told CNBC broadcasters that he likes to bet on football games because it “makes it more interesting.” However, he also warned that he doesn’t think he wants “to make a living trying to bet against the house.” Buffett hinted that stimulus checks may have also increased the gambling drive. “You had millions of people who were receiving checks and money, sitting at home and finding out that they could have a roulette wheel in their house,” the investor said. When asked specifically about the leading crypto asset bitcoin (BTC), Buffett said:
Bitcoin is a gambling token, and it doesn’t have any intrinsic value — but that doesn’t stop people from wanting to play the roulette wheel.
In the midst of Buffett’s gambling rhetoric, he also made a comparison to chain letters. Chain letters are messages that were commonly sent through snail mail, encouraging the recipient to forward the message to a certain number of people, promising that they would receive some sort of benefit in return. “I didn’t like chain letters when I was a kid,” Buffett explained to the CNBC show hosts. “I thought, ‘Why in the world would I send along a chain letter — when I could start my own?’”
While the chairman and CEO of Berkshire Hathaway clearly doesn’t like bitcoin, he is known for his aptitude for investing. Berkshire Hathaway owns several well-known businesses, such as Geico, Fruit of the Loom, Duracell, BNSF Railway, See’s Candies, Clayton Homes, Pampered Chef, and Dairy Queen. According to the latest data from companiesmarketcap.com, Berkshire Hathaway (BRK-B) is listed as the eighth-largest market capitalization in terms of assets in the world. Bitcoin (BTC), on the other hand, is the tenth-largest market valuation worldwide according to the same website.
What do you think about Warren Buffett’s stance on bitcoin and gambling? Do you agree or disagree with his perspective? Share your thoughts in the comments below.