Warren Buffett Calls Bitcoin ‘Delusional’: Watch a Billionaire Ramble and Stumble on About Bitcoin
“Bitcoin has no unique value at all. It doesn’t produce anything. You can stare at it all day and no little bitcoins come out. It’s a delusion basically.”
"Bitcoin, it's ingenious, and blockchain is important… but bitcoin has no unique value at all," Warren Buffett comments on bitcoin and crypto. "It's a delusion basically." https://cnb.cx/2TgxrSC
Posted by CNBC Crypto on Monday, February 25, 2019
A Great Misconception
While his response to Bitcoin is scathing, it is not necessarily strange. Because Bitcoin and cryptocurrency, in general, aren’t physically-held, it often comes off as an illusion to many people and some even believe it to be nothing more than a Ponzi scheme.
However, many minds seem to be changed even as cryptocurrency gains more traction in the world. For example, the management of JP Morgan has previously referred to Bitcoin as ‘stupid’ but ended up launching a cryptocurrency of their own a few years after when it became apparent that there was money to be made from it.
This is also believed to be one of the factors that hinder the institutional investment in the crypto industry. If powerful people in the finance world still do not take it seriously, then adoption will be slower and harder to achieve.
A need for knowledge
“It’s a very ingenious thing to figure out how to have a limited supply and make it harder and more expensive to create.”
While he is correct that there is a limited supply of bitcoin in existence, he seems to imply that bitcoin was built to fail with time, which is untrue. Fortunately, as bitcoin and crypto make more progress towards acceptance and adoption, a great understanding of how it works will be achieved, even among those in high places.
Fortunately, Buffet himself admits that he isn’t fully educated about bitcoin, saying,
“This is explained to me by people a lot smarter than I am.”
Should he, and the general public, be better educated about bitcoin, blockchain and crypto, there will likely be more Elon Musks cheering for the industry to succeed than people criticizing it every turn.