Crypto Twitter Reacts to Buffett’s Recent Criticism of Bitcoin

Warren Buffett, an American business tycoon and one of the most successful investors in modern history – with a net worth of approximately $90 billion, has argued that Bitcoin (BTC), the flagship cryptocurrency, is a “gambling device.”

Buffett, who has previously compared cryptocurrencies to “rat poison,” recently told reporters (prior to attending Berkshire Hathaway’s annual meeting): “There’s been a lot of fraud connected with [Bitcoin]; there have been disappearances. So there has been a lot lost on it. The bitcoins haven’t produced anything.”

Bitcoin “Just Sits There”

Buffett, who’s a notable philanthropist as he’s reportedly pledged 99% of his wealth to charity, mainly through the Bill & Melinda Gates Foundation, thinks that Bitcoin “doesn’t do anything.” He claims the world’s most dominant cryptocurrency “just sits there.” Moreover, the prominent speaker compared Bitcoin to a seashell which has no meaningful purpose.

Buffett also noted he doesn’t consider Bitcoin to be an investment. He remarked: “I’ll tear off a button here. What I’ll have here is a little token…I’ll offer it to you for $1,000, and I’ll see if I can get the price up to $2,000 by the end of the day… But the button has one use and it’s a very limited use.”

Bigger Question Is If You Can Do Payments On Top Of Bitcoin, A “Gambling Device”

In response to Buffett’s comments, Twitter user JP Koning (jpkoning) acknowledged that Buffett was right in saying that Bitcoin is used frequently to engage in speculative trading or gambling. However, Koning, an economist and active blogger, mentioned that “the bigger question is whether you can build a payments system on top of a gambling device.”

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