Key Insights:
- Billionaire investor, Warren Buffet has referred to Bitcoin as a “gambling token with no intrinsic value,” in a CNBC interview
- As regards Bitcoin, he says “The impulse to engage in anything that appears to offer quick money is a human instinct.”
- Bitcoin, unperturbed, has soared by more than 70% from the start of the year when it jumped from below $19,300 to about $30,000 where it now sits.
In an interview with CNBC on Wednesday, billionaire investor Warren Buffett took yet another jab at Bitcoin, referring to the largest cryptocurrency by market cap as a “gambling token.”
"#Bitcoin is a gambling token and it doesn't have any intrinsic value. But that doesn't stop people from wanting to play the roulette wheel," says Warren Buffett on #crypto. pic.twitter.com/6MQAiyrS5J
— Squawk Box (@SquawkCNBC) April 12, 2023
With this interview on CNBC, Buffet, the current chairman and CEO of Berkshire Hathaway (BRK.A) brought his pessimistic view on cryptocurrencies to light again.
He said that while Bitcoin “doesn’t have any inherent value, people still want to spin the roulette wheel.”
Buffett remarked in a statement on gambling in general, saying that “The impulse to engage in anything that appears to offer quick money is a human instinct.â€
He says that this instinct has always existed, implying that the same is happening with Bitcoin and its investors.
Buffet’s Attacks On Bitcoin
Bitcoin has been one of the largest critics of Bitcoin from the get-go. In his interview with CNBC, he openly questioned the cryptocurrency’s overall value as a means of exchange.
“Bitcoin is a gambling token and has no intrinsic valueâ€, according to Buffett.
The Berkshire Hathaway CEO said, “But that doesn’t stop people from wanting to play the roulette wheel,” noting that this fact does not dissuade investors.
Buffett has previously called the digital asset an “illusion,” among other less-than-savoury criticisms.
His most recent remarks are intriguing, though, given that they were made at a time when cryptocurrencies are doing exceptionally well. Particularly, the most well-known digital asset has increased by more than 70% this year.
This is without mentioning that even the “regular money†we use today are only pieces of paper. In terms of “intrinsic valueâ€, a dollar bill or even a hundred has none.
Buffett, on the other hand, appears to base his investing philosophy on what he considers to be valuable.
The renowned investor does indeed seem to view digital assets like Bitcoin as speculative in nature. He, therefore, formed his opinion of it as an investment gamble based on its volatility.
Bitcoin’s Price Performance
In terms of performance, Bitcoin has soared by more than 70% from the start of the year, when it jumped from below $19,300 to about $30,000 where it now sits.
From a weekly perspective, the cryptocurrency is more than 7% up.
TradingView also reports fairly strong technicals on the cryptocurrency.
According to TradingView in the snapshot above, the oscillators on Bitcoin show neutral positions, the moving averages show a strong buy signal, and the summary shows a fairly strong buy signal.
The cryptocurrency is changing hands somewhere around $29,900 at the time of writing and is still trying to break above the $30,000 zone properly.
Disclaimer: Voice of Crypto aims to deliver accurate and up-to-date information, but it will not be responsible for any missing facts or inaccurate information. Cryptocurrencies are highly volatile financial assets, so research and make your own financial decisions.
