Warren Buffett Decided Not to Buy Bitcoin at $130 in 2013, Missed 4,000% Gains
Is Warren Buffett going through a bit of buyer’s remorse?
The billionaire investor and prominent cryptocurrency critic first chose not to buy Bitcoin way back in 2013.
When it was trading around $130 in May of that year, Buffett said, “Of our $49 billion, we haven’t moved any to Bitcoin.”
According to CNBC, the comment came during a discussion with Buffett and his business partner and fellow crypto detractor Charlie Munger:
“Berkshire Hathaway Vice Chairman Charlie Munger, Buffett’s long-time business partner, had kicked off the discussion that Saturday saying he had ‘no confidence whatsoever’ in bitcoin becoming a universal currency. Buffett agreed, saying that was his ‘gut reaction.'”
Both Buffett and Munger have a history of issuing strong words against Bitcoin and cryptocurrency in general.
Buffett has said Bitcoin is a “mirage” and has predicted many cryptocurrencies “will come to a bad ending.”
Munger has been more colorful in his choice of words, saying that trading Bitcoin is almost as bad as “trading freshly harvested baby brains.”
Since Buffett’s initial decision not to buy Bitcoin, its price has surged more than 4,000%.
Currently trading around $6,151, Bitcoin is down from its all-time high of nearly $20,000.
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Comments 3
vrildox
Jun 30, 2018My perspective comes in somewhere in the middle between Gravy’s and Jathan’s. I absolutely understand why Buffett and Munger don’t trust Bitcoin; not having any underlying value. However, neither does the United States Dollar. The only reason it is valued is people perceive it to have value. Same thing with Bitcoin. It is only valuable to those who perceive it as such. Cryptocurrencies are not worthless..they are merely a medium of exchange, as the USD is. They have many capabilities the USD does not, such as able to be stored in massive amounts in a tiny space (stored on a hardware wallet), sent rapidly (USD bank transfers take days whereas sending someone Tron takes seconds and Bitcoin an hour), can be brought with you on an airplane (try taking a briefcase filled with hundreds on an airline and see how security reacts to you!?). Buffet and his buddy are very smart men but out of their depth when it comes to modern technology. Bitcoin was not meant to be used as a speculative investment like securities on the stock exchange. It was supposed to be a way to pay for goods and services. Now that it has become slow to transact and costly to send, newer alt-coins such as Tron and Bitcoin Cash will become the superior choice for those who want to pay digitally. Do your research!
jathan
Jun 28, 2018Simple explanation – Warren Buffett doesn’t wants to gamble or speculate like the bit coiners. Bitcoin is a man made virtual material that doesn’t produce a return. Instead its bought on a simple principle, ”If i am buying it for a 10 $ my hope is that someone will buy it from me for 20 $” pure speculation. Virtual money will 100% fail as it is man made…People who have sense wont buy this crap.
Bitcoins and Gravy (@BitcoinsNGravy)
Jun 27, 2018Buffet used to be called “The Oracle of Omaha”.
His new name is “The Orifice of Oh Ma God”!
Why?
Because these days, anything coming out of that baggy orifice on his face (some call it a mouth) is pure crap and makes intelligent people exclaim: “Oh Ma God . . . what a friggin moron!!!”