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Warren Buffett Says Bitcoin Is Delusion, But Blockchain Is Important


Billionaire investor Warren Buffett, a known bitcoin critic, described the world's largest cryptocurrency as a delusion and said that it attracts charlatans.

In an interview with CNBC, the chairman and CEO of conglomerate Berkshire Hathaway, however, pointed out the potential in bitcoin's important underlying technology blockchain. But, the technology's success does not depend on cryptocurrency, he added.

Bitcoin has no unique value at all and basically its a delusion, Buffett told CNBC's Becky Quick in a Squawk Box interview.

The Oracle of Omaha said he is sympathetic to optimists who bought bitcoin in hopes that it would change their lives. The coin, once worth around $20,000, is currently trading around $3,852.

Buffett said, "It attracts charlatans. If you do something phony by going out and selling yo-yos or something, there's no money in it — but when you get into Wall Street, there's huge money."

Buffett has been a longtime critic of Bitcoin and cryptocurrencies. Back in 2014, Buffett had said Bitcoin and its peers were a mirage and it was a joke that they had some huge intrinsic value.

Ahead of the 2018 Berkshire Hathaway annual shareholder meeting, Buffett said that Bitcoin was probably rat poison squared. He had also said earlier that buying Bitcoin as an investment is a gamble, and that it was a nonproductive asset as it creates nothing.

Buffett is amongst a long list of business leaders, who have questioned bitcoin's legitimacy. These include Microsoft co-founder Bill Gates, Buffett's confidant Charlie Munger, economists Nouriel Roubini and Robert Shiller, and fund managers Ray Dalio and Howard Marks.

J.P. Morgan CEO Jamie Dimon had criticized bitcoin earlier, but the major bank recently launched its own cryptocurrency for cross-border payments.

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