Charlie Munger, Buffett's longtime business partner and a Berkshire vice chairman, is also no bitcoin fan, describing it as "worthless artificial gold". Berkshire Hathway's CEO Buffett has always been a cryptocurrency detractor, but he raised the stakes at the new meeting, calling bitcoin "rat poison squared".
Buffett's company, Berkshire Hathaway, is the biggest shareholder in Wells Fargo, which has been mired in scandal for more than a year. According to CCN, he said the system is a "joke", likening that to putting some value to checks just because they are used to transmit money. "In terms of cryptocurrencies, generally, I can say with nearly certainty that they will come to a bad ending", Munger said. Why in the world should I take a long or short position in something I don't know about? Citing data from CoinSchedule, CCN said ICOs in 2017 generated over $3.2 billion.
However, he (Buffett) admits he does not understand cryptocurrencies, Green said. The 87-year-old billionaire and notorious investor has expressed doubts about the inherent value of Bitcoin since its launch. Buffett's main problem with cryptocurrencies is that they aren't productive assets.
But the most important and shocking thing he said was that he would short it. Though virtual currencies are just nothing more than insane investments, according to Gates, like other cryptocurrency skeptics he still believes that blockchain itself as a separate technology can be rather useful.
Following the collective comments, Bitcoin's value dropped almost 6 percent on Sunday and then another 2 percent today, to just over $9,300. The statement from the Board member of Warren Buffet's Berkshire Hathaway comes as the total market cap of cryptocurrencies dropped from over $813 billion to about 438 billion as of today.