Warren Buffett Warns on U.S. Dollar — Is It Time to Buy Bitcoin?

• Warren Buffett suggested that diversifying into other currencies might become necessary to mitigate these challenges around the US Dollar.
• Although Buffett has historically criticized Bitcoin, some analysts speculate that Berkshire Hathaway could explore investments in alternative currencies, including Bitcoin.

During the 60th annual shareholders’ meeting at Berkshire Hathaway, Oracle of Omaha, Warren Buffett, made a bold announcement while warning about the weakening of the US Dollar in the coming years. Amid the ongoing trade war, Buffett has raised a warning that the Dollar could lose its dominance over time, and that having exposure to other currencies would make greater sense.

Warren Buffett Issues Stark Warning on Collapse of the USD

Raising caution over the long-term stability of the US Dollar, Warren Buffett hinted that Berkshire Hathaway could soon diversify into other currencies. Speaking at the shareholder gathering, he said:

“Obviously, we wouldn’t want to be owning anything that we thought was in a currency that was really going to hell.” He added,

There could be… things happen in the United States that… make us want to own a lot of other currencies.

In his speech, Buffett voiced significant concerns about U.S. fiscal policies, highlighting how continuous money printing by the government devalues the currency over time. “Fiscal policy is what scares me in the U.S,” noted Buffett.

Warren Buffett has been backing up his word by action, as Berkshire Hathaway has been increasing its cash pile at a very rapid pace over the past year. By the end of 2024, the financial giant held a total of $134 billion in stock of Apple and Bank of America. However, the firm is now sitting on a massive cashpile of $347 billion.

Berkshire Hathaway has adopted a completely defensive strategy in these current uncertain macro conditions, as Buffett seems to be preparing for major market movements ahead and wishes to hold the cash pile to dig into any key opportunities available in the future. However, as reported by CNF, Bitwise Invest President Teddy Fusaro pitched to Buffett to get some Bitcoin exposure, in this scenario.

Will Buffett Switch to Bitcoin Anytime Soon?

While the US Dollar begins to lose its shine, global market players are seeing Bitcoin as a potential hedge to the falling Dollar. Bitcoin’s fixed supply and decentralized structure are often cited as safeguards against the inflationary pressures caused by excessive money printing.

However, Warren Buffett has refrained from mentioning Bitcoin in his recent speech and has been an ardent critic of the cryptocurrency in past, calling BTC “rat poison squared”. However, some market analysts also believe that Buffett could be having a change of heart moving ahead.

Some X users suggest that Berkshire Hathaway might be exploring investments in alternative currencies, with predictions that the company could make a substantial entry into Bitcoin. Speculation even suggests Berkshire could surpass MicroStrategy in Bitcoin holdings, potentially deploying billions into the cryptocurrency.