Will Bitcoin keep minting more millionaires or is this just a 'dead cat bounce'? Here's why Warren Buffett believes crypto 'will come to a very bad ending'

Will Bitcoin keep minting more millionaires or is this just a 'dead cat bounce'? Here's why Warren Buffett believes crypto 'will come to a very bad ending'
Will Bitcoin keep minting more millionaires or is this just a 'dead cat bounce'? Here's why Warren Buffett believes crypto 'will come to a very bad ending'

Are you a fan of roller coaster rides? Have we got the investment for you: Bitcoin.

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Thrill-seekers and earnest crypto fans have spent the last few years watching the alternative investment rise and fall — sometimes with exhilaration and sometimes with that sinking stomach feeling.

After hitting an all-time peak of around $69,000 per unit on November 10, 2021, the world's leading digital currency has since erased roughly 60% of its value, sitting at about $26,800 right now.

To be sure, bitcoin has rallied once again over the last several weeks, up nearly 62% so far in 2023.

But what would the world's most famous investor say to those who might be thinking of buying Bitcoin right now?

“If you ... owned all of the bitcoin in the world and you offered it to me for $25, I wouldn’t take it,” Warren Buffett told CNBC earlier this year.

Other than Bitcoin's disappointing track record, here are three more reasons Buffett won’t go near it.

1. It has ‘no unique value at all’

The billionaire investor doesn’t like Bitcoin because he considers it an unproductive asset.

Buffett has a well-known preference for stocks of corporations whose value — and cash flow — come from producing things. But cryptocurrencies don’t have real value, Buffett said in a CNBC interview in 2020.

“They don't reproduce, they can't mail you a check, they can't do anything, and what you hope is that somebody else comes along and pays you more money for them later on, but then that person's got the problem.”

Though Bitcoin is intended to provide real value as a payment system, that use is still pretty limited. As Buffett sees it, Bitcoin’s value comes from the optimism that someone else will be willing to pay more for it in the future than you’re paying today.

2. He doesn’t think crypto counts as money

Buffett has made his share of extremely cutting remarks about Bitcoin and cryptocurrency over the years: “I don't have any Bitcoin. I don't own any cryptocurrency, I never will,” he told CNBC back in 2020.

As a tradeable asset, Bitcoin boomed. But does it meet the three criteria of money? According to the most common definition, money is supposed to be a means of exchange, a store of value, and a unit of account.