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- 1 The audacity of investing in cryptocurrencies is akin to “play a roulette wheel,” says Warren Buffet.
- 2 The centi-billionaire investor bashed the crypto industry, yet again, as it started rallying again.
The leading cryptocurrency, Bitcoin (BTC), started this week with optimism. Bitcoin hit the 30,000 USD level and reached its 10-month high around Tuesday, April 11. The instance was joyous for the broader crypto market and crypto industry, though not everyone has a similar opinion. Warren Buffet has an image of a bitcoin (BTC) and crypto critic, and he reiterated his stance after the crypto asset hit a recent high.
Warren Buffett Hits on Bitcoin
In a recent interview with CNBC, American businessman, and prominent investor Warren Buffett called out Bitcoin (BTC) as a “gambling token.” Buffet said the crypto asset is worthless as it has no intrinsic value, yet people do not refrain “from wanting to play the roulette wheel.”
The Chairperson and Chief Executive Officer (CEO) of Berkshire Hathaway compared cryptocurrencies with gambling. He said one could spend the whole life “around the roulette wheel because they feature the winner and people get excited about it.” They are the same as slot machines in casinos; they make noise but do not pay.
According to Buffett, the gambling instinct of people makes them take chances and hence invest in cryptocurrencies. However, he argues, putting the money in the asset class ends up wiping out all of it.
“The urge to participate in something [that] looks like easy money is a human instinct,” I’ve always wanted to get rich slowly, and I have a lot of fun along the way.”
Crypto Getting Back on Track
The global crypto market had taken a hit following the recent crypto winter, which led many crypto assets to witness enormous value drops. Starting since the start of last year, it continued after experiencing a fall in crypto assets like:
- Terra’s LUNA and UST stablecoin,
- Crypto firms Celsius, BlockFi, and
- Once a leading crypto exchange– FTX filed for bankruptcy.
However, the market is under relief at the start of this year, with major cryptocurrencies rallying since the beginning.
Bitcoin (BTC) is up by more than 60% since the start of 2023, while Ethereum (ETH) has gained up to 35% during a similar timeframe. Despite the significant growth in the initial months of this year, the crypto assets are far behind, 56% and 36%, respectively, from their all-time highs. The global crypto market capitalization also rose to more than 1.2 trillion and continued to stall.
Bitcoin (BTC) is trading at 30,067 USD after gaining over 7% last week.
Ethereum (ETH) is revolving around 1,917 USD, with a slight increase of 1.6%, according to the CoinMarketCap data.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only, and they do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
