Warren Buffett Doesn’t Want Anything to do With Cryptocurrencies Even After Tron Lunch
Warren Buffett, the CEO of Berkshire Hathaway, remains adamant in his belief that cryptocurrencies hold no value and has denied owning any digital coins.
In an interview with CNBC’s Becky Quick, Buffet said that his recent charity lunch with Justin Sun, the founder and CEO of TRON, didn’t sway his mind when it comes to the new asset class.
“When Justin and four friends came, they behaved perfectly and we had a very friendly three and a half hour dinner and the whole thing was a very friendly exchange of ideas,” Buffett said but added that neither he nor Sun changed their mind following the discussion.
“Cryptocurrencies basically have no value. They don’t produce anything,” he explained. “You can’t do anything with it except sell it to somebody else.”
“In terms of value—zero.”
The legendary investor has famously stayed away from investing in tech companies before purchasing major stakes in Apple and Amazon last year, finding it hard to predict the longevity of the companies in such a competitive industry.
However, Buffett, who famously called Bitcoin “rat poison squared,” became the talk of the industry last year when Sun paid $4.5 million for a charity lunch with the crypto skeptic. While he seemed content with the event that took place earlier in January, saying that Sun’s donation will make a difference in his GLIDE charity foundation, he said that he didn’t own any cryptocurrency himself.
“I never will,” he asserted during the interview.
The crypto entrepreneur also claimed that Buffett recognized the potential of blockchain technology, saying that some of the companies in his Berkshire Hathaway portfolio such as JPMorgan were exploring it.
Bitcoin, on the other hand, is something none of the companies he invests in are using. Apart from believing the world’s first cryptocurrency has any intrinsic value, he also noted that it is “frequently” used to fund illegal activities.
Buffett, the fourth richest man in the world, believes that Bitcoin has been used to move around “a fair amount of money illegally.” However, the investor managed to find some humor in that, saying that Bitcoin might have an “economic contribution” to society after all.
“The logical move from the introduction of Bitcoin is to go short suitcases,” he said jokingly. As suitcases have often been used to move money from one country to another, the invention of Bitcoin would make them obsolete and thus a perfect asset to short on the stock market, Buffett explained.
While cryptocurrencies might not be able to “mail you a check” as Buffet noted in the interview, it’s worth noting that Bitcoin has been one of the best-performing assets in the past decade with its performance making it one of the few “safe haven” investments.