Warren Buffett Criticizes Bitcoin’s Rise: “Game of Chance”

Known as the oracle of Omaha, the city where he was born, Warren Buffett is one of the most famous names in the financial industry due to his longstanding success as an investor.

Starting from scratch, Buffett today has an inheritance of US$109.3 billion (R$541 billion), making him the fifth richest man in the world. In front of him are Bernard Arnault, Elon Musk, Jeff Bezos, and Larry Ellison, respectively.

Despite his success, the prominent investor remains a strong critic of Bitcoin. After calling the cryptocurrency “rat poison” in the past, Buffett returned this Tuesday (12) to criticize BTC, citing the investment “gamble”.

Warren Buffett is still not convinced about Bitcoin

To some extent, Warren Buffett’s investment strategy is simple. The Oracle of Omaha loves dividends and compound interest. That is, you will not see Buffett buying gold, but you will find investments in mining companies.

Perhaps that is your biggest problem with Bitcoin. After all, crypto doesn’t generate dividends, relying only on its scarcity to appreciate the rampant printing of fiat currencies.

However, Buffett’s problems with Bitcoin seem to go further. Speaking to Squawk Box, the investor classified the asset as a “gamble” while the cryptocurrency shows gains of 82% in 2023.

“Bitcoin is a gambling chip and has no intrinsic value. But that doesn’t stop people from wanting to play roulette.”

In another excerpt, the legendary investor also notes that people like the idea of ​​getting rich quick. “I don’t judge them”Buffett said, but noted that his fortune was slowly being built.

Does Warren Buffett invest in cryptocurrencies?

Also this week, Warren Buffett increased his position in five Japanese companies. One of them, the Sumitomo Corporation, is linked to the Ripple cryptocurrency and the R3 Corda.

“Buffett is buying Japanese stocks again. This stake has holders of Ripple, R3 and XRP, with Sumitomo Corp’s financial arm, Sumitomo Mitsui Financial Group, owning approximately 9.9% of SBI Holdings (Ripple’s largest outside shareholder and user/advocate of On-Demand Liquidity (ODL ) of XRP, 14% of R3 Japan and a significant investment in the Ripplenet MoneyTap app.”

Moreover, Buffett’s BRL 2.5 billion injection into Nubank is also considered another indirect investment in cryptocurrencies as the Brazilian bank offers such assets to its clients. That is to say, nowadays it is hard to stay away from Bitcoin, even if you hate it.

Source: Live Coins

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