The unflattering commentary on cryptocurrencies routinely offered by Berkshire Hathaway CEO Warren Buffet continued apace at the company's May 5 annual meeting. According to CNBC reporting, Buffet reiterated his position that cryptocurrenices are destined for what he termed a "bad ending," and used "rat poison squared" to describe Bitcoin.
During the meeting, a Ukrainian attendee inquired about Buffet's overall take on cryptocurrencies, eliciting another negative view. Buffet assailed Bitcoin as being less than a "productive" asset in contrast to corporate shares or real estate. He went on to say that because of this, the lone price-determining element related to Bitcoin is investor demand. The result, according to Buffet, is that digital currencies of this sort are ripe for exploitation by unscrupulous players, and once the initial euphoria disappears, things will end badly.
Charlie Munger, Berkshire Hathaway Vice Chairman, voiced similar concerns about the global rise of investments in cryptocurrencies, pulling no punches when expressing his disdain. Likening cryptocurrencies to "turds," Munger's colorful thoughts were clearly in sync with Buffet's.
Buffet's doubts about cryptocurrencies have been well-known for quite some time. The octogenarian has long made statements designed to cast doubt on Bitcoin's supposed status as a viable method of investing or as a currency in general. In the latter portion of 2017, Buffet declared Bitcoin to be firmly within "bubble territory," and in imminent danger of implosion.
However, there are significant institutional voices that have been bold in their optimism about Bitcoin. Goldman Sachs, for example, has introduced a trading arm in recent days, proclaiming that the cryptocurrency trend is far from a fraud.
Given the vast influence Buffet, and by extension, Munger have in the investment and financial worlds, it remains to be seen how much influence their unflattering views of cryptocurrencies have on the markets now and well into the future.