Billionaire Warren Buffett Criticizes Bitcoin Calling It ‘Gambling Token’

• Gambling impulse, he claimed, is why so many individuals like playing the lottery.
• Buffett added that its allure lies in the attractiveness of the gambler’s instinct.

Warren Buffett, the billionaire businessman renowned for his outspoken condemnation of Bitcoin and the cryptocurrency industry, has reaffirmed his stance. On Wednesday, as Bitcoin’s price rose beyond $30,000 and neared a 10-month high, he made the remarks.

Buffett has said that the leading cryptocurrency, Bitcoin, is nothing more than a “gambling token” with no real value. Gambling impulse, he claimed, is why so many individuals like playing the lottery.

The famed investor shocked the financial world last year when he said that Bitcoin was useless because it created nothing. He flat-out refused to pay more than $25 for every Bitcoin in circulation. The billionaire slammed the market leader in cryptocurrencies during his speech at Berkshire Hathaway’s annual shareholder meeting in May 2022.

Bitcoin Price on Rise

Bitcoin’s value plummeted when the Terra network collapsed last year followed by massive FTX collapse, but the cryptocurrency is showing signs of rebound near the $30,000 level. Buffett has just reaffirmed his view on the long-term viability of the cryptocurrency sector. He compared gambling to Bitcoin in an interview with CNBC on Wednesday, saying that people would keep doing it even if it creates no value.

He added that its allure lies in the attractiveness of the gambler’s instinct. The gambling sector has grown exponentially, he said. Meanwhile, the crypto world is looking forward to another surge in Bitcoin price.

This is because Bitcoin’s price tends to spike significantly after each halving of block rewards. And the next Bitcoin halving is scheduled for next year. Bitcoin’s reward will be cut in half on or around April 28, 2024, at block 840,000.