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Warren Buffett On Bitcoin: “Stay Away From It”

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

Warren Buffett On Bitcoin: “Stay Away From It”
[Image: Flickr user btckeychain]

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

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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.

About the author

Based in San Francisco, Alice Truong is Fast Company's West Coast correspondent. She previously reported in Chicago, Washington D.C., New York and most recently Hong Kong, where she (left her heart and) worked as a reporter for the Wall Street Journal.

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