Billionaires Bill Gates and Warren Buffett both agree that bitcoin is a very bad investment. The latter even compared it to “rat poison squared” at his company Berkshire Hathaway’s (BRKB) annual meeting on Saturday.
Indeed, it was a rough weekend for Bitcoin investors. The value of the cryptocurrency dropped by almost 6% on Saturday. Today it is down another 2%.
Berkshire vice chairman Charlie Munger said on the matter, “to me, it’s just dementia. It’s like somebody else is trading turds and you decide you can’t be left out.”
Since the beginning, Buffett and his associates have always hated Bitcoin and it’s cryptocurrency counterparts.
“If you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more,” Buffett told Yahoo Finance in an interview.
“You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you wanna gamble, somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”
Buffett had similar opinions back in November of 2017.
“You can’t value [it] because it’s not a value-producing asset,” he said.
Buffett was even been quoted saying that bitcoin is a “mirage” back in 2014. BC’s were worth approximately $600 then, but now they’re worth almost $10,000.
However, those who are familiar with cryptocurrency know that it is highly volatile. It is pretty normal for cryptocurrencies to fluctuate up or down by about 10% on any given day. At the end of 2017, bitcoin was valued at a record-breaking $19,500 according to Coindesk, which currently values bitcoins at $9,300.
For some people, Bitcoin is akin to “rat turds.” For others, it has brought them enormous fortunes and might even improve renewable energy sources in the future. In the end, it’s about knowing when to cash in on that investment.