WASHINGTON, DC - OCTOBER 16: Warren Buffett speaks onstage at the FORTUNE Most Powerful Women Summit on October 16, 2013 in Washington, DC. (Photo by Paul Morigi / Getty Images for FORTUNE)
In a CNBC report, during the annual investor meeting, Warren Buffett, the CEO of Berkshire Hathaway - a stock-equity company - once again dismissed the value of bitcoin, calling it "rat poison".
The conference on Saturday, May 5 was the perfect scenario for Buffett to release all kinds of negative comments on cryptocurrencies, a position that was fully supported by Berkshire Vice President Charles Munger, who commented that business with cryptoactives was "a complete madness".
It should be noted that Buffett has a fairly extensive history of "tantrums" towards bitcoin. Just last week he said that whoever puts money in the acquisition of cryptocurrencies was not investing in reality, but betting.
When buying non-productive assets, all that is expected is for the next person to pay more because they are even more excited about someone paying more. [...] This is like a betting game, since someone with more money will always come. That's why he did not consider it an investment.
His record extends as far as October 2017, when he also commented that:
In terms of cryptocurrencies, in general, I can almost say with certainty that the result will not be positive. [...] If I could buy a five-year coupon for each of the cryptocurrencies, I would be happy to do so and I would never miss a penny.
Likewise, Buffett thinks that cryptocurrencies are generally like a chain that depends on the money that other people put in, without even being backed by a real asset.
Cryptocurrencies, especially bitcoin, have become popular recently in part due to their sharp rise in prices. In 2017, bitcoin increased from less than US $ 1,000 to more than US $ 20,000 in some exchanges. After the beginning of 2018, its value fell to around US $ 7,000 and, only recently, it rose again to more than US $ 8,000.
Buffett is not the only one who has commented negatively on cryptocurrencies.
Last week, the economist and professor at the University of New York, Nouriel Roubini, sparked controversy by declaring that bitcoin and Blockchain technology are a waste of time.