Warren Buffett remains sceptical of cryptocurrency due to volatility and lack of tangible value
9th March 2025 – (Omaha) Investing in cryptocurrency remains a high-risk venture, primarily due to its notorious volatility. Even Bitcoin, the market leader, has faced significant fluctuations, underscoring why seasoned investors like Warren Buffett remain sceptical. Buffett, the CEO of Berkshire Hathaway, famously labelled Bitcoin as “probably rat poison squared” in 2018, expressing his belief that cryptocurrencies are unlikely to end well.
In a subsequent interview, he reiterated his stance, stating, “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.” Despite the tumultuous nature of the crypto market, which has seen both surges and drops over the years, recent developments, including Bitcoin’s 30% rise since the election of President Donald Trump, have reignited interest in digital currencies.
Buffett’s investment strategy, characterised by a preference for established companies with sound fundamentals, starkly contrasts with the speculative nature of cryptocurrencies. He has consistently avoided direct involvement with digital assets, asserting, “Now if you told me you own all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it because what would I do with it?”
However, it is noteworthy that Berkshire Hathaway has made indirect investments in the crypto space, such as a $500 million stake in Nu Holdings, a Brazilian bank with its own crypto platform. This move, while significant, pales in comparison to the company’s overall market capitalisation of around $1 trillion.
Despite growing acceptance of cryptocurrency among businesses worldwide, as highlighted by a Deloitte report, Buffett’s investment philosophy remains rooted in traditional value creation. He tends to favour companies that produce tangible goods or services, which contrasts sharply with the intangible nature of cryptocurrencies, which, according to critics, do not generate income or inherent value.