• 23 July, 2024
News

Bitcoin Says Bitcoin is a “Gambling Token” with No Intrinsic Value

In a recent appearance on CNBC’s Squawk Box, Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, once again expressed his skepticism towards Bitcoin (BTC). Buffet called Bitcoin a “gambling token” with no intrinsic value, reiterating his long-standing skepticism toward the world’s largest cryptocurrency by market capitalization.

Buffett compared Bitcoin and other cryptocurrencies to gambling activities such as roulette and slot machines, stating that people may be drawn to the excitement of potential winnings and the allure of success stories. He highlighted the differences in odds on a roulette wheel and the noisy payouts of slot machines, illustrating the psychological aspects that drive people to participate in these games.

Buffett continued that he is not sure how to reverse this trend, stating, “I don’t know how to turn back the clock on that.” Echoing his previous opinion of the cryptocurrency, Buffett said that Bitcoin “doesn’t have any intrinsic value … but that doesn’t stop people from wanting to play the roulette wheel.” 

He also commented on gambling in general, stating that “the urge to participate in something that looks like easy money is a human instinct which was always there.”

While Buffett’s distaste for Bitcoin is well-known, his primary subordinate, Berkshire Hathaway Vice Chairman Charlie Munger, has been even more vocal about his disapproval of Bitcoin and other cryptocurrencies. Earlier this  year, Munger urged the United States to follow China’s lead and outlaw it, saying, “it’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity.”

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