Warren Buffett, the legendary investor and CEO of Berkshire Hathaway, once again criticized Bitcoin (BTC) during an appearance on CNBC's Squawk Box this morning.
Labeling the digital currency a "gambling token" with no intrinsic value, Buffett's comments reiterate his long-standing skepticism toward the world's largest cryptocurrency by market capitalization.
Buffett compares Bitcoin and other cryptocurrencies to gambling activities such as roulette and slot machines. He highlights that people may be drawn to the excitement of potential winnings and the allure of success stories.
He then mentions the differences in odds on a roulette wheel and the noisy payouts of slot machines, illustrating the psychological aspects that drive people to participate in these games. The legend implies that the hype around cryptocurrencies, fueled by sensationalism and the fear of missing out, might lead people to make poor investment decisions.
Buffett expressed that he is not sure how to reverse this trend. "I don't know how to turn back the clock on that," he said.
In the past, the "Oracle of Omaha" famously referred to the cryptocurrency as "rat poison squared" and has consistently warned investors against putting their money into the volatile digital asset.Despite the growing acceptance of cryptocurrencies in the mainstream financial sector, Buffett remains steadfast in his opinion that the flagship cryptocurrency is little more than a speculative gamble.
Last year, Charlie Munger, Buffett's right-hand man, predicted that Bitcoin was very likely to plunge to zero.