Warren Buffett is one of the most successful investors of all time. So when he says something about investing, people tend to listen.
Recently, Buffett has been vocal about his negative views on Bitcoin and other cryptocurrencies. He has called Bitcoin “rat poison” and compared it to a “mirage.”.
So is Warren Buffett right about Bitcoin?
In short, no.
Buffett’s views on Bitcoin are based on a fundamental misunderstanding of how the cryptocurrency works. He seems to think that because there is no underlying asset backing Bitcoin, it has no value.
But this ignores the fact that Bitcoin is backed by the blockchain, which is an incredibly valuable technology.
Furthermore, Buffett’s criticisms of Bitcoin are based on a short-term perspective. He doesn’t seem to understand that Bitcoin is a long-term investment.
Yes, it can be volatile in the short-term, but over the long-term it has shown to be a very profitable investment.
So while Warren Buffett is a very successful investor, he is wrong about Bitcoin.