Bitcoin continues to set new 10-month highs during its impressive run-up to start the year. Bitcoin briefly eclipsed $30,600 Thursday to mark its highest level since June 8. Meanwhile, ethereum reclaimed its $2,000 level for the first time in nearly a year following its Shanghai upgrade to a proof-of-stake protocol. But not everyone is buying into the promises of digital currencies. Investment guru Warren Buffett still thinks they're a gamble.
Berkshire Hathaway Chairman and CEO Warren Buffett reiterated his negative view of bitcoin Wednesday, calling it "a gambling token," in an interview with CNBC's Squawk Box. The Oracle of Omaha has been a longtime skeptic of the cryptocurrency, often comparing it to gambling. Meanwhile, the bitcoin price held near $30,000 after spiking to 10-month highs earlier this week.
Buffett Bashes Bitcoin
"Something like bitcoin, it is a gambling token and it doesn't have any intrinsic value," Buffett said. "But that doesn't stop people from wanting to play the roulette wheel."
"The urge to participate in something where it looks like easy money is a human instinct which has been unleashed," Buffett said. "People love the idea of getting rich quick and I don't blame them ... It's so human, and once unleashed you can't put it back in the bottle."
Buffett and Berkshire Vice Chairman Charlie Munger have been vicious bitcoin bears. At the Berkshire Hathaway 2018 shareholder meeting Buffett said bitcoin is "probably rat poison squared."
Munger Chastises Crypto
Munger particularly despises virtual currencies. He penned an opinion piece in the Wall Street Journal in February urging U.S. lawmakers to ban cryptocurrencies.
"A cryptocurrency is not a currency, not a commodity, and not a security," Munger wrote. "Instead, it's a gambling contract with a near 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity."
And Munger didn't mince words when questioned at the Daily Journal Corporation's annual shareholders meeting in February, calling it "worthless," CNBC reported.
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"Sometimes I call it crypto 'crappo,' sometimes I call it 'crypto s---.' It's just ridiculous that anybody would buy this stuff," he told CNBC during a livestream of the event. "It's totally absolutely crazy, stupid gambling."
He went further saying, "I think the people who oppose my position are idiots, so I don't think there is a rational argument against my position," he said.
Other experts disagree, citing growing use cases and overseas adoption. ARK Invest and CEO Cathie Wood raised their bitcoin price target to $1.48 million by 2030, up from their $1 million forecast in December. MicroStrategy spent $4.17 billion buying up bitcoin and the company's investment is finally back in the black after the most recent price surge.
Bitcoin Price Action
Bitcoin price traded above $30,500 Thursday afternoon after peaking at $30,607 intraday. BTC retreated just below $30,000 by late Wednesday, following the Nasdaq lower for the day. The digital currency popped to $30,499 following the CPI report, which showed cooler-than-expected inflation data. BTC is holding its gains after bolting above $30,000 Tuesday for the first time since June. The world's largest cryptocurrency rocketed nearly 85% so far this year.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
