“If I could buy a five-year bet on each of the cryptocurrencies, I would be happy to do it, but I would never make a ten of ten.” – Warren Buffett.
Now that the legendary investor and the CEO of Berkshire Hathaway, Warren Buffett, retires at the end of the year, let’s review why he never invested in Bitcoin.
Never forget, there is the character that Warren Buffett, who is formulated as an investor of old folk weather, just buy good old actions as you buy your fast food and your televisions! Then there is the reality where it is much closer to someone like George Soros, Stanley Druckenmiller who “broke the Bank of England”, or Paul Tudor Jones.
At the end of last year, concerning his opinions on Bitcoin, he said: “I saw people doing stupid things all my life.”
Savage and based, old man.
Likes or hates it, Buffett is the most prosperous investor of all time, so let’s see why he will not invest in BTC:
Warren Buffett says that you cannot “analyze the fundamentals in cryptographic space?”
Buffett’s investment method is obstinately simple: finding what makes money (PE ratios), understanding how it works and buying it only if it is undervalued. It sticks to companies with clear models, regular yields and leaders who know what they are doing.
This strategy strikes a wall with the crypto, where the evaluation is more opaque than fundamental. Buffett was frank – he does not understand, does not want and see no reason for someone else should.
(Source))
But there is a way to properly enhance a piece of crypto; You start by asking these questions:
- Does anyone use this part?
- If not, will it be used in the future?
- Is the team qualified?
- What is GitHub activity?
- Do developers incentives ($$$) keep this thing alive?
You cannot really predict the future, but you can assess viable use cases.
Is it true that Bitcoin is a false internet money?
Buffett has already made this assertion and is probably right to some extent. More than 90% of cryptocurrencies will probably end with a final accident or slow bleeding.
Bitcoin is an abstract internet money. But we would not call it a faker or more speculative than the currencies mentioned by central banks. They print money in a very speculative way to serve the interests of the government and deprive you of the value of your savings.
In its most basic form, Bitcoin represents an opt-out of the printing of inflationary currencies.
As it is not only for speculation and has an economic utility, we would say that it is much more than “false internet money”.
Why won’t Warren Buffett be short Bitcoin?
In a 2018 CNBC article, Warren Buffett explained why he would never have short Bitcoin: “Why should I devil should I take a long or short position in something I don’t know?”
Buffett is stuck in the mentality that has built its richness, and which could blame it? He only invested in any information age company in 2016. It will be some time before the blockchain technology has enough public impact for Fuddy Duddies like him to support him wisely.
What about gold?
Warren Buffett recently called Gold and Silver “unproductive” and their “titled” holders.
It may be a place where he and cryptographic investors can agree. Bitcoin has offered better yields than gold since 2013 and will continue to eat Gold’s market capitalization. However, his own business has not surpassed gold for 27 years.
After a completely massive outperformance in the years and decades before, Berkshire Hathaway of Warren Buffett has been on the verge of simply having gold since 1998, or about 27 years ago. pic.twitter.com/1n8k3nipr1
– Lyn Alden (@lynaldencontact) April 10, 2025
Bitcoin has several advantages compared to the shiny parts:
- He weighs nothing. Sending and transporting gold to use it as a currency is expensive
- It costs nothing to store
- It can be sent anywhere in the world to anyone
- It is divisible to many decimals
- It cannot be cleared. No one even knows how much gold is in FT. Knox.
Final thought
Bitcoin is an exodus of corrupt monetary policy. Although it does not mark you at the supermarket grocery store, it can protect your savings.
Although Buffett will never buy Bitcoin, he has legendary wisdom and lessons on how to invest. Do not throw the baby with the bath water.
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Key dishes to remember
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Now that the legendary investor and the CEO of Berkshire Hathaway, Warren Buffett, retires at the end of the year, let’s review why he never invested in Bitcoin.
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Bitcoin is an exodus of corrupt monetary policy. Although it does not mark you at the supermarket grocery store, it can protect your savings.
The post Warren Buffett: why you should always invest in Bitcoin appeared first on 99Bitcoins.
