88 year old, Warren Edward Buffett, is an American business magnate, investor, speaker and philanthropist who serves as the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and had a mighty net worth of US $89.9 Billion as of May 4, 2019, making him the third-wealthiest person in the world.
He developed an interest in business and investing in his youth and created Buffett Partnership, Ltd in 1956. His firm eventually acquired a textile manufacturing firm called Berkshire Hathaway and assumed its name to create a diversified holding company. In 1978, Charlie Munger joined Buffett and became vice chairman of the company.
Warren Buffett doesn’t seem to be positive of Cryptocurrency at all. Speaking at the so called, “Woodstock of Capitalism”, the billionaire investor told shareholders in Berkshire Hathaway how he feels about the Bitcoin. His company’s annual shareholder event was being held in Omaha and he just couldn’t resist going on and on about digital currency that he just doesn’t seem to comprehend. Buffett reportedly said, “It’s a gambling device, there’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything.”
Buffett, last year called cryptocurrency “rat poison squared” His partner, Charlie Munger, reportedly once had compared crypto trading to “dementia!” Buffett’s shareholders probably come to Omaha just to hear what he had to say about cryptocurrency stealing the show.
Buffett was unstoppable. He went on to insult investors who not only have benefitted from the very nature of bitcoin but he also stated that Bitcoin not an investment at all! He should repeat himself to the 100-million and still growing, crypto community, many of whom have seen their portfolios rise since the bitcoin price hit a new 2019 high all together.
Buffett, has been the chairman and largest shareholder of Berkshire Hathaway since 1970 and he has been referred to as the “Wizard”, “Oracle”, or “Sage” of Omaha by global media outlets. But Buffett, is hurling himself to a disadvantage by saying, “It (Bitcoin) doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me.”
Bitcoin’s market cap is now $101 billion; it’s increased from $89 billion in the past two weeks or so. The point to be mindful about his remarks is that, his own company’s stock, Berkshire Hathaway, is underperforming the broader stock market year-to-date. It has 8% gains vs. a double-digit percentage for the S&p 500. Probably he’s acting like he can’t see the value of cryptocurrency just because he doesn’t want to.
Bitcoin is a store of value that rivals gold. It is that digital currency that gives migrants a way to send money to their families faster and cheaper than any money-transfer service without the blockchain can do. Moreover, it’s decentralized, thus is not a subject to the whims and fancies of any Central Bank or Government. However, whether he realizes it or not, Buffett is attracting huge negativity by claiming that, “Blockchain is very big, but it didn’t need bitcoin. J.P. Morgan, of course, came out with their own cryptocurrency.”
Blockchain pioneer, Wences Casares, once said that people who fail to recognize the value of bitcoin but believe in blockchain tech demonstrate an “ignorance for how the system works.”