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Why is Warren Buffett so Against Owning Cryptocurrency?

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Billionaire Warren Buffett, the man at the head of Berkshire Hathaway, and one of the most respected investors in the game have proven time and time again that he is no fan of Bitcoin or any other cryptocurrency. He has called it rat poison before; said it worthless, and reiterated recently that he does not, and will not, own any.

However, this has turned out to be a rather contentious issue, and it is an issue that swims around a contentious man in TRON Founder, Justin Sun. Sun and Buffett have been forced together in the minds of the cryptocurrency space when the TRON head decided to buy the rights to a lunch with the finance magnate. 

This lunch turned into a fiasco at first when Sun withdrew due to health reasons, but it finally concluded earlier this month. The lunch apparently went off well, and both sides enjoyed their time, but nothing was really achieved. Sun said his goal was to convince Buffett Bitcoin is a good thing, but he failed there. 

More so, he also said he gifted Buffett 1 BTC, as well as TRX tokens, as a show of goodwill and to try and show him the value, but Buffett said on CNBC that he did not own any cryptocurrency, and would not. This sparked Sun into revealing the addresses where Buffett’s Bitcoin is held. 

Why the fear?

It seems odd that Buffett would so vehemently deny holding such an asset when he was simply gifted it, but if his views are anything to go by, and what happened to peter Schiff with his Bitcoin are taking into consideration, then maybe it makes sense. 

For Buffett, as a traditional finance man, the notion of Bitcoin does not sit well with him. As he has expressed cryptocurrencies do not produce, reproduce, or deliver anything — or even “mail you a cheque” — and that the only hope is that someone else will buy it off you for more money down the line.

Buffett believing that they are a scourge that does nothing means that owning one means the only way to get rid of it is to sell it on to someone else, and while this may be at a profit, Buffett is not a fan of moving this scam, in his opinion, onto someone else. 

Fear of the community?

More so, Buffett has entered into the cryptocurrency consciousness because of his views on crypto, but he has only been responding to questions put to him. This is unlike Nouriel Roubini and Peter Schiff who have enjoyed playing the pantomime villains in the crypto community. 

Schiff saw the hard end of getting Bitcoin wrong when he lost his password to his own gifted BTC wallet, and perhaps Buffett wants nothing to do with that sort of backlash. 

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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