From “rat poison squared” to “stay away from it” – some of his remarks have been quite brutal. Yet, BTC’s market cap is bigger than Berkshire’s.
Arguably the most well-known investor of our (and the previous) generation, Warren Buffett, has formally stepped down as chairman of Berkshire Hathaway after more than 60 years at the company. He has now become Chairman Emeritus and remains on the board. His son, Howard G. Buffett, will succeed him as chairman, while Greg Abel continues to run the company as CEO.
In the farewell letter to shareholders, the 96-year-old said the timing was right to “complete the transition,” praised Abel for fully taking control of the Berkshire empire’s day-to-day decisions, and described his son as the guardian of the company’s culture and values.
For us crypto folks, his retirement also closes the active career of one of Bitcoin’s most famous and persistent skeptics. The “Oracle of Omaha” has repeatedly dismissed the asset as speculative, non-productive, lacking intrinsic value, and unsuitable as an investment through the years. Here are some of the most famous.
Rat Poison Squared
Perhaps none is more Buffett-like than the 2018 comment when he described Bitcoin as “probably rat poison squared.” The remark followed years of criticism from both Buffett and his late business partner Charlie Munger, and quickly became one of the most frequently cited anti-BTC quotes in traditional finance.
It was not an isolated outburst, as earlier that year Buffett said cryptocurrencies would “come to a bad ending” and emphasized that Berkshire had no intention of taking any position in any of them.
His main objection remained consistent over the years: unlike businesses, farmland, or rental properties, Bitcoin does not generate cash flow or produce anything on its own.
Stay Away From It
The 2018 rat poison square lashout was not the first such case. In fact, Buffett’s criticism dates much further back. In 2014, when the cryptocurrency was still trading for only a few hundred dollars, he told CNBC investors to “stay away from it,” as it was a “mirage.” He acknowledged that it could function as a method of transmitting money but questioned why that should give the asset major intrinsic value.
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He also described Bitcoin as “very speculative” around the same time, and said he would not be surprised if it no longer existed 10 or 20 years later. Well, it has been more than 10 years, and it’s still here. Haters might even say that it’s bigger than Berkshire Hathaway. Not only haters, but numbers too – Bitcoin’s market cap is over $1.6 trillion now, while Berkshire’s is below $1.1 trillion. No biggie.
Wouldn’t Buy It All Even for $25
Unlike many other former critics who eventually softened their view or even completed a full 180-degree turn, Buffett has remained consistent. At his company’s 2022 annual meeting, he gave perhaps his clearest explanation of why BTC did not fit his investing philosophy.
He contrasted the cryptocurrency with productive assets such as farmland and apartment buildings, which generate food and rental income. Bitcoin, he said, produces nothing and ultimately depends on someone else being willing to pay more for it later. To strengthen his point, Buffett said that even if someone offered him all the Bitcoin in the world for just $25, he would not buy it. “What would I do with it?” he asked.
Gambling Token
A year later, Buffett spoke to CNBC and said BTC is a “gambling token” with intrinsic value and compared its appeal to people wanting to play roulette. That criticism also reflected one of his recurring concerns about markets more broadly: speculation.
He has long argued that investors can be drawn into assets simply because prices are rising, creating a cycle in which buyers depend on the enthusiasm of the next participant rather than the productive value of the underlying asset.
Bitcoin proponents have long rejected that framework, arguing that scarcity, decentralization, censorship resistance, settlement utility, and its fixed supply give it value even if it does not produce cash flow in the same way some companies do.
As mentioned above, BTC has survived all of his criticism that began a decade ago (maybe even sooner; we couldn’t find anything prior to 2014). As explained above, it has grown to be a bigger asset than his own company, even if it’s far from the peak reached last year. Nevertheless, Bitcoin investors are well aware that the asset is quite controversial, especially among the older generation.
Despite Buffett’s views and comments on BTC, he remains and will forever remain one of the GOATs in the investment world, and we wish him all the best.
