Warren Buffett On Bitcoin: "Stay Away From It"

The billionaire investor criticized the virtual currency for its lack of intrinsic value.

You know who's not so bullish on Bitcoin? Warren Buffett.

Appearing on CNBC's Squawk Box on Friday morning, the billionaire investor was asked to share his thoughts on the economy, housing market, and Bitcoin, among other topics. When it comes to the cryptocurrency, Buffett has these words of advice to investors: "Stay away from it."

Calling Bitcoin "a mirage," he took fault not with recent lapses in security that have led to a number of high-profile heists, but with Bitcoin's intrinsic value. It's safe to assume he's not the person behind the anonymous $147 million Bitcoin transaction last fall.

The chairman and CEO of Berkshire Hathaway views Bitcoin as a means of transferring money—not as a currency. "A check is a way of transmitting money too. Are checks worth a lot of money just because they can transmit money?" he asked. "The idea it has some huge intrinsic value is such a joke." Indeed, that's one of the biggest arguments critics have against the virtual currency. Unregulated and not backed by anything of value, such as gold, Bitcoin's decentralized nature is also what makes it so popular among its fans.

[Image: Flickr user btckeychain]

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6 Comments

  • Sipho Moganedi

    Whatever form money comes in whether in paper, plastic, bronze, electronic including Bitcoin in its basic sense it is a storage mechanism for value. Value is something we have agreed upon. As society or people we have agreed that $100 bill holds more value than $1 bill even though the actual paper has no more value than the other.

    Money that is regulated by governments is not backed up with gold like in the past. Money is a creation of the mind and it is not real.

  • I do this demo for my friends: I lay out a $1 bill, a $5 bill, and a $10 bill. All the same size, all the same technology, yet we all agree that the 5 is worth five 1s and the 10 is worth two 5s. All money is fiction.

  • John Smith

    I'm sorry, not to be rude - but this article (and many others) lack substantive content. It seems FastCompany is turning into a click-bait generating site.