In brief
- Warren Buffett's comments from his meal with Justin Sun have been revealed.
- The investor claims that it doesn't have enough practical value.
- He prefers blockchain over Bitcoin.
Warren Buffett has long been dismissive of Bitcoin, even going so far as to call it “rat poison squared.” But he has never really explained why he dislikes Bitcoin and doesn’t see it as a worthy investment.
According to a video posted by the Tron Foundation, Buffett explained why he wouldn’t buy Bitcoin at his recent meal with Tron CEO Justin Sun—that eventually happened earlier this month.
“[Buffett] believes people get protection from stocks and equity,” the video states. “Bitcoin is simply a changing hands activity with no value added.”
The video continues, relaying Buffett’s belief that Bitcoin doesn’t have enough “practical value.” Reportedly, Buffett stated that Bitcoin only derives worth from trading, and is incapable of storing value—making it “no different from a seashell.”
But it wasn’t all bad news. The billionaire tycoon allegedly touted the benefits of blockchain technology, noting that it could become a “disruptive” force within finance.
“Bitcoin cannot capture the value of blockchain. Just because something has value doesn’t make it a good investment,” Buffett purportedly said.
“Mr. Buffett says blockchain has its value. There are a lot of incredible companies in the payment market and it has huge demands. He believes blockchain technology will have a disruptive effect on the future of payment,” the video concludes.
So, Buffett is squarely in the blockchain, not Bitcoin camp. But for how long?
Tips
Have a news tip or inside information on a crypto, blockchain, or Web3 project? Email us at: tips@decrypt.co.