Bitcoin is, by all accounts, a highly controversial topic. The increasingly popular form of crypto-currency has seen its popularity soar in recent years as its use is backed further by influential figures and companies alike. However, not everyone shares the same opinion of Bitcoin and by association, blockchain. Warren Buffett is an American business investor and speaker who has not been shy to vocalise his opinions on both of these things, many of which are incredibly negative.
A man who has long voiced an aversion to the online currency, Warren Buffett's opinion on Bitcoin and blockchain is a controversial one but one that he has not been shy to come forth with. Buffett told CNBC in February 2019 that he believed Bitcoin had 'no unique value' and that the crypto-currency is little more than, in effect, 'a delusion'. Just a year previous, he had not been shy to brand the form of electronic currency as 'rat poison squared' so it is no surprise that his criticisms have not slowed down. Buffett believes that the currency's plummeting value in comparison to its initial trading years is testament to what he believes is simply a mirage.
Just months later, his criticism of Bitcoin further escalated in an interview in which he related Bitcoin to being a source of fraud. He told reporters that he believed it to be a 'gambling device' with lots of 'connected frauds' and that it brings nothing of any real value to the industry. Essentially he believes that Bitcoin has limited use and henceforth cannot be scaled and will not be evolutionised. Buffett remains resilient in his belief that Bitcoin will 'end badly' for many with nothing but disappointment becoming increasingly evident from this. It should be noted that Buffett's negativity does not surround just Bitcoin but crypto-currency in general with his belief that the value of it will decrease drastically, making it essentially void in the future.
Buffett's rather vocal distaste of all things crypto-currency dates as far back to 2014 where he first warned investors that he did not have faith in Bitcoin's ability to withstand the years. He discussed how, ultimately the Bitcoin relied on the investor to pay more each time for something that remains the same value, meaning financially there was little to no benefit to investing for anyone. He has since always maintained that he would avoid any involvement in Bitcoin. He does not seem, at any point, willing to accept that Bitcoin currency is anything more than a dead end and often vocalises that its an 'unproductive asset'.
Despite Warren Buffett's opinion on Bitcoin being radically negative, he has however, on more than once occasion stated that he does not share the same opinion when it comes to blockchain. While he ruled himself out as an investor in the concept, he did state that he believed that it was a big concept that did not need to rely on Bitcoin for its success. Interestingly, Buffett even went as far as to suggest that blockchain is an ingenious concept with many standalone positives however does not appreciate its association with Bitcoin