'A Real Bubble': Billionaire Warren Buffett Doubles Down on Bitcoin Doubt

Billionaire investor and Berkshire Hathaway CEO Warren Buffett said bitcoin's price is in a bubble during a question-and-answer session this month.

Oct 26, 2017 at 5:30 p.m. UTC
Updated Sep 13, 2021 at 7:05 a.m. UTC

Billionaire investor Warren Buffett has joined the ranks of those who believe the market for bitcoin is in bubble territory.

, Buffett touched on the subject during an annual question-and-answer session held in Omaha earlier this month. While Buffett focused on a range of topics, he honed in on the cryptocurrency market during his remarks.

"People get excited from big price movements, and Wall Street accommodates," he was quoted as saying. Describing bitcoin as a "real bubble," according to the publication, Buffett also criticized the idea of applying a value to bitcoin.

He told attendees:

"You can’t value bitcoin because it’s not a value-producing asset."

Buffett's comments came amidst a significant month for bitcoin's price, according to CoinDesk data. After fluctuating around $4,300 at the beginning of October, the price surged to more than $6,100 less than a week ago.

That Buffett would take a harsh stance toward bitcoin is perhaps unsurprising, given that, in 2014, he advocated that investors stay away from bitcoin entirely.

"It's a mirage basically," he was quoted as saying at the time.

Nor is Buffett the only market observer to issue remarks around the market's recent developments. Earlier this week, Saudi Prince Al-Waleed bin Talal said that he expects bitcoin to fail.

Others, however, have adopted a different approach. On Oct. 24, New York University's "Dean of Valuation," Aswath Damodaran, argued that bitcoin is a true currency and not a fraud in a new blog post.

Warren Buffett image via Krista Kennell / Shutterstock

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First Mover Asia: Funds Lost Billions in the Terra Collapse. Here are the Ongoing Effects; Bitcoin Sees Red

When a fund suffers a major dent to its token, the impact reverberates widely throughout the venture funding eco-system; most major cryptos fell despite gains in U.S. equity markets.

When a fund suffers a major dent to its token, the impact reverberates widely throughout the venture funding eco-system; most major cryptos fell despite gains in U.S. equity markets.

CoinDesk - Unknown
2
CoinDesk - Unknown
At Davos, Crypto Is No Longer on the Outside

Cryptocurrencies have taken a prominent role at the World Economic Forum's annual meeting in Davos, despite the mainstream finance world's apparent contempt for the sector.

Cryptocurrencies have taken a prominent role at the World Economic Forum's annual meeting in Davos, despite the mainstream finance world's apparent contempt for the sector.

CoinDesk - Unknown
3
CoinDesk - Unknown
Wall Street Says a Fed Digital Dollar Spells Destruction for Banks

The Federal Reserve is considering whether to launch a CBDC like other nations, and bankers argue that’s a dangerous idea.

The Federal Reserve is considering whether to launch a CBDC like other nations, and bankers argue that’s a dangerous idea.

CoinDesk - Unknown
4
CoinDesk - Unknown
What Davos Man Thinks of Bitcoin and Crypto This Year

The annual WEF conference has begun, albeit late and in a more subdued fashion.

The annual WEF conference has begun, albeit late and in a more subdued fashion.

CoinDesk - Unknown