Billionaire Warren Buffett and Charlie Munger, the Chairman and Vice Chairman of Berkshire Hathaway respectively, doubled down their criticism on bitcoin.
On Saturday, during Berkshire Hathaway’s annual shareholder meeting, Buffett said bitcoin is “probably rat poison squared.” The company’s vice chairman, Charlie Munger called the cryptocurrency a “turd” and investing on it is “just dementia.”
On Monday, Buffett told CNBC’s Squawk Box that the cryptocurrency is a non-productive asset because it creates nothing. It is one of the reasons he dislikes the cryptocurrency.
According to him, when investing on a farm he looks at the crop it produces. When buying a business, he looks at its earnings. He emphasized, “We are buying something that at the end of the period, we not only have what we bought in the first place, but we have something that the asset produced.”
Additionally Buffett said, “When you’re buying non-productive assets all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along.The asset itself is creating nothing.”
