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Warren Buffett predicts ‘bad ending’ for Bitcoin – is it a doomed investment?

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Currently ranked sixth on Forbes’ list of real-time billionaires, Berkshire Hathaway co-founder, chairman and CEO Warren Buffett is a prime example of an investor who stuck to his core financial beliefs early in life to become no. just a success, but a once-in-a-lifetime inspiration for those who followed in his footsteps.

One of the most trusted investors for decades, 93-year-old Buffett isn’t shy about pontificating about your investment philosophywhich focuses on value investing, buying shares for less than their intrinsic value and holding them over the long term.

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He also talks a lot about investments he considers worthless. AND one of them is Bitcoin.

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Buffett’s opinion on Bitcoin

Over the past decade, it has become clear that the crypto craze is not something Buffett wants to participate in. He described Bitcoin as “probably rat poison squared” in 2018.

“In terms of cryptocurrencies, in general, I can say with almost certainty that they will come to a bad end,” Buffett said in 2018. And his position hasn’t changed since. According to Benzinga, Buffett believes that cryptocurrencies are not a viable or valuable investment.

“Now, if you told me you owned all the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it, because what would I do with it? I would have to sell it back to you one way or another. It’s not going to do any good,” Buffett said at Berkshire Hathaway’s 2022 annual shareholder meeting.

While the Oracle of Omaha has doubts about unpredictable investing, does this mean crypto is doomed as an investment? Not necessarily.

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Is Buffett wrong about Bitcoin?

Bitcoin bulls argue that, although not government-issued, the cryptocurrency is as fungible, divisible, secure, and portable as fiat currency and gold. Because they occupy a digital space, cryptocurrencies are decentralized, scarce and durable. They can last as long as they can be stored.

Crypto boosters continue to predict massive growth in the currency’s value. Earlier this year, SkyBridge Capital founder and former White House communications director Anthony Scaramucci told reporters that Bitcoin could surpass $170,000 by mid-2025, and Ark Invest CEO Cathie Wood predicts that Bitcoin will reach $1.48 million by 2030, according to Fortune.

The story continues

“They don’t really understand the concept and the whole story of money,” Scaramucci said of crypto critics like Buffett on a recent episode of Jason Raznick’s “The Raz Report.” Because we place value on “traditional” currency, it is essentially worthless compared to transparent and trustworthy digital Bitcoin, Scaramucci said.

Currently trading around the $66,000 mark, Bitcoin is up nearly 50% in 2024. This means it is massively outperforming most indices this year, including the S&P 500, which is up around 6% in 2024.

Although Berkshire Hathaway has invested heavily in Brazilian Bitcoin-related fintech company Nu Holdings, which has its own cryptocurrency called Nucoin, it’s possible that Buffett will never fully embrace crypto despite its recent surge in value. It is contrary to the reliable investment strategy that has served you well for decades.

“The desire to participate in something that feels like easy money is a human instinct that has been triggered,” Buffett said. “People love the idea of ​​getting rich quick, and I don’t blame them… It’s so human, and once it’s triggered, you can’t put it back in the bottle.”

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This article originally appeared on GOBankingRates. with: Warren Buffett predicts ‘bad ending’ for Bitcoin – is it a doomed investment?

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