Why Warren Buffett Is Wrong About Crypto: Expert Opinion
Despite many heeding his lessons on investing, Berkshire Hathaway (NYSE: BRK.A ) CEO Warren Buffett has long been criticized by the cryptocurrency community over his stance on digital assets such as Bitcoin (BTC), which he has claimed which lack intrinsic value and ‘rat poison.’
His right-hand man Charlie Munger is not far from Buffett on the matter, saying that investors should “never touch” crypto, but instead look past the peak of inflation, as well as support both fossil fuels and renewable energy because, in his view, “crypto is an investment in nothing,” and a “bad combination” of “part fraud and part delusion.”
However, their predictions of a crypto decline have so far fallen short, as the majority of major cryptocurrencies have proven use cases, cryptos are traded daily on crypto exchanges, while the industry’s market cap is currently over $1 trillion, per the CoinMarketCap data retrieved March 27.
Crypto’s success
On top of that, the unfolding banking crisis has driven Bitcoin’s market cap to surpass that of traditional financial giants, including payments platform Visa (NYSE: V ) and banking giant JPMorgan Chase (NYSE: JPM ). At the same time, Bitcoin has outperformed 97% of all S&P 500 listed companies this year.
Furthermore, it should be noted that Bitcoin has outperformed commodities in 2023, especially gold, which is considered “the best performing old-guard commodity”, by almost 10 times, possibly indicating a super cycle, according to Bloomberg commodities expert Mike McGlone.
Meanwhile, the crypto community has not remained silent on Buffett’s hostile comments. After he said that he would never buy Bitcoin, even if the entire supply was offered to him for $25, as it “isn’t going to do anything”, several experts shared their opinions.
Specifically, Binance CEO Changpeng Zhao tweeted in May that Bitcoin and Buffett “don’t need each other. Warren has enough paper money and is happy. Bitcoin has enough supporters and is growing.” As he explained in another tweet:
“There is no need to sell/promote Bitcoin to people who have already decided they don’t want it. We don’t need 100% adoption. Currently, adoption is probably less than 5%. Teach it to others who may need it. “
Not only that, but Linda P. Jones, author of the crypto book 3 steps to quantum wealth, drew attention to Buffett’s investments in companies with exposure to crypto, including investing $500 million in Brazilian crypto-friendly financial institution Nubank, which reached 1 million crypto users in less than a month in July.
Pratik Gauri, founder and CEO of 5ire, a blockchain company that promises to provide sustainability, technology and innovation to usher in the fifth industrial revolution, chastised Buffett, asking him and his right-hand man Charlie Munger if they had solved a single revolution. of the 17 best sustainable development goals from the global agenda.
“The old guard at the helm of the industry that created the current sustainability crisis are venting their frustration over something they neither understand nor can control. (…) Most of the rapid innovation happening is happening in the crypto space, he said.
Finally, in April 2022, Anthony Scaramucci, founder and managing partner of investment firm SkyBridge Capital and former adviser to Donald Trump, criticized Buffett and several other anti-crypto billionaires, questioning the quality of their research (or lack thereof) on crypto, suggested they didn’t “do their homework),” as Finbold reported.
