Warren Buffett Still Holds His Stance Against Bitcoin

It has been known since around 2014 that billionaire Warren Buffett had no intention of jumping on the Bitcoin bandwagon, quoted as saying that Bitcoin is “a mirage basically”. He joins the ranks of powerful business leaders and giants in the banking industry who fervently oppose cryptocurrency and the implications it has on the global economy.

In an Omaha conference earlier this month, Buffett emphasized his position on Bitcoin and the entire cryptocurrency industry. He covered many topics in the question and answer portion of the conference but he made sure to focus on cryptocurrency for a large part of the talk.

In reference to what many analysts have called the Bitcoin Bubble, Buffett was quoted as saying”

“PEOPLE GET EXCITED FROM BIG PRICE MOVEMENTS, AND WALL STREET ACCOMMODATES. YOU CAN’T VALUE BITCOIN BECAUSE IT’S NOT A VALUE-PRODUCING ASSET”

This statement is not entirely untrue, since Bitcoin has no company behind it, nor does it have an official organization that runs or creates it, valuation is extremely difficult to pin down in black and white terms. It does seem that Buffett is under the same misapprehension that many traditional business men who rely on the fiat economy to operate, which is to say that he sees Bitcoin and cryptocurrency in general as a threat to the financial sector and how it operates.

Eventually, as more companies begin accepting Bitcoin as valid payment and people start seeing it less as a strange digitized version of paper money and more like the digital gold that it really is. One based on scarcity and the incredible amount of time and energy required to mine each token. Until more traditional investors start seeing the light that Bitcoin and Blockchain technology shines on the financial sector, these wealthy holdouts like Warren Buffett who seek to protect the status-quo will continue to miss the mark when it comes to cryptocurrency.