• Warren Buffett has warned of a boom in gambling in financial markets and has criticized Bitcoin as having no intrinsic value.
• Bitcoin’s price has increased 80% since the beginning of the year, however Buffett still remains a critic of the cryptocurrency.
• Buffett believes investments need to have some sort of inherent value, viewing crypto assets as speculative and vulnerable to dramatic price swings.
Warren Buffett Warns Of Gambling In Financial Markets
Warren Buffett, one of the most successful investors in the world known as the “Oracle of Omaha”, has issued a warning that there has been a boom of gambling in the financial markets. He threw a jab at bitcoin, stating that the cryptocurrency does not have any inherent value.
Bitcoin’s Price Increase Does Not Change Criticism
Since the beginning of 2021, Bitcoin (BTC) has increased by more than 80%. Despite this increase in its price, it still faces criticism from prominent figures such as Warren Buffet who claim that it is merely “gambling token”.
Cryptocurrency Is Speculative And Vulnerable To Price Swings
Buffett believes investments should have some sort of inherent value and views cryptocurrencies as speculative assets and thus vulnerable to dramatic price swings. He also referred to BTC as “rat poison squared” and declared that it is a “mirage” which attracts charlatans.
Recent Crypto Market Performance
Recent weeks have seen significant gains across crypto markets – with Messari reporting 61% gains for BTC and 35% for Ethereum since January 2021 – although both remain considerably below their all-time highs set back in November 2021. On Tuesday 12th April 2021, BTC went beyond $30K for the first time since June 2020.
Conclusion
Despite recent performance improvements across crypto markets, Warren Buffett remains an outspoken critic on its lack of fundamental value due to its speculative nature – making his opinion clear on what he believes is nothing more than gambling with digital tokens.