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Amid the ongoing bloodbath in the cryptocurrency market, and billions of dollars being wiped off, Billionaire investor Warren Buffett’s remarks and actions can serve as a stepping stone going forward. He may be overjoyed at the moment, but vested interests of his company into crypto-startups can cause him a pinch of sadness.
Buffett is well recognised as a value investor, and has been a staunch critic of cryptocurrencies ever since they grabbed the spotlight and exploded in value. He feels they have no intrinsic value, and the day the bubble bursts, it will unleash mayhem.
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At a Berkshire Hathaway annual shareholder meeting in May 2022, Buffet argued that bitcoin is not a productive asset because it doesn’t generate anything tangible. He further mentioned:
“If you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check. It’s very simple. Now 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. It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food.”
His disdain for cryptocurrencies is not new, and he has made similar statements in the past.
Buffett previously said during a CNBC interview in 2018:
“I don’t have any Bitcoin. I don’t own any cryptocurrency, I never will, It’s “probably rat poison squared”
Here are a few top reasons why Buffett is against cryptocurrencies:
Bitcoin is an unproductive asset, according to the billionaire investor who dislikes it. Buffett noted that certain assets, such as artwork, do not necessarily yield something tangible.
However, if a work of art is made by a reputable artist and has been around for a while, someone will certainly find it intriguing enough to acquire. He does not believe Bitcoin attracts the same level of attention.
He said: “For assets to have value, they must provide something to someone.” 
Buffett is not convinced that Bitcoin is a currency. He said that the only money acceptable in the United States is the dollar. Buffett added that one could attempt to construct whatever currency they want, but there is no reason for the United States government to allow any currency to replace the dollar.
Buffett became one of the most successful investors by focusing on stocks he fully understood. Buffett’s statements all boil down to the fact that he does not understand it. 
Buffett has previously stated: “Never invest in a business you cannot understand.
Buffett may not get how cryptocurrencies function or how they may be the forerunner of this fintech revolution. Still, he has made investments that have violated his beliefs in some respects.
In June of 2021, Berkshire Hathaway invested $500 million in the largest Latin American financial technology company, Nubank. The fintech bank declared at the time that this was the biggest single investment it had ever received.
Within a few months following his investment, the “Oracle of Omaha” boosted his ownership in the company to $1 billion in February 2022. Are we sniffing hypocrisy here or did we misjudge the billionaire’s statements?
Warren Buffett has consistently said publicly that he believes crypto is useless since it does not generate anything. His actions completely contradict his statements, though. This demonstrates that regardless of a person’s influence, you should not absorb their remarks at face value.
If Buffett invests tomorrow in an asset that bets on BTC falling, you would know he is serious about his stance on the crypto assets. Otherwise, we know what to make out of it.
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