Warren Buffett’s Anti-Crypto Stance May Have Changed — Here’s an Update
Written by
Heather Altamirano
Edited by
Zuri Anderson
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Warren Buffett is not a crypto enthusiast. The legendary investor has never shied away from voicing his concern over its volatility, and over the years, has repeated skepticism toward the industry, including bitcoin the leading crypto. Although the digital currency is widely recognized and has had extraordinary moments like recently hitting $100,000 in value for the first time, Buffett is not a fan.
However, his company Berkshire Hathaway might be easing up on crypto. Here’s why.
Bitcoin Is ‘Rat Poison’
During an annual shareholder meeting for Berkshire Hathaway back in 2018, Buffett famously referred to bitcoin as “probably rat poison squared,” CNBC reported.
In the meeting, Charlie Munger, Buffett’s longtime collaborator and Berkshire’s vice chairman, also made a strong remark against crypto saying that trading in the digital currency is “just dementia.”
Buffett Has Warned Other Investors To Take Precautions
That same year, Buffett took his disdain for crypto further and warned others to avoid getting involved, while making unfavorable predictions.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” he told CNBC. “If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it, but I would never short a dime’s worth.”
Berkshire Hathaway’s Changing Views
While others excitedly get on board with the crypto craze, Buffett has remained unimpressed. However, it appears his firm is taking a different stance.
In 2021, Berkshire Hathaway invested $500 million, followed by another $250 million in Nu Holdings, a Brazilian digital banking company Fortune reported. Given Berkshire Hathaway is valued around $1 trillion that isn’t much, but it is significant because Nu has its own crypto platform.
But that’s not the only indirect link Buffett has to crypto. Berkshire Hathaway owns 433,558 shares of Jefferies Financial Group Inc., a financial services company, according to Benzinga, which is also noteworthy since the company has a large stake in the largest spot exchange-traded Bitcoin fund in the world-iShares Bitcoin Trust ETF.
Although crypto is having a big moment since President Donald Trump threw his support behind the digital currency increasing the awareness and enticing others to invest, don’t expect Buffett to flip his viewpoint.
In 2022, the CEO sharply rebuked crypto again during a Berkshire Hathaway shareholders meeting, CNBC reported.
“If you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another,” Buffett said.
“It isn’t going to do anything.”
More From GOBankingRates
Sources
- NPR, “Bitcoin hits $100,000 for the first time. 3 things to know about an incredible ride.”
- CNBC, “Warren Buffett says bitcoin is ‘probably rat poison squared’.”
- Fortune, “Warren Buffett’s Berkshire Hathaway takes a sip of the crypto ‘rat poison’ he once said he would never go near.”
- Benzinga via Yahoo! Finance, “Warren Buffett Avoids Bitcoin, But Do You Know Berkshire Hathaway Owns Stake In A Company That Pitches BTC As ‘Critical’ Inflation Hedge.”
- CNBC, “Warren Buffett wouldn’t buy ‘all of the bitcoin in the world’ for $25: ‘It doesn’t produce anything’.”
