{"id":25385,"date":"2025-05-06T13:16:52","date_gmt":"2025-05-06T13:16:52","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=25385"},"modified":"2025-05-06T13:16:52","modified_gmt":"2025-05-06T13:16:52","slug":"warren-buffett-why-you-still-should-never-invest-in-bitcoin","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=25385","title":{"rendered":"Warren Buffett: Why You Still Should Never Invest In Bitcoin"},"content":{"rendered":"
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\u201cIf I could buy a five-year put on every one of the cryptocurrencies, I\u2019d be glad to do it but I would never short a dime\u2019s worth.\u201d \u2014 Warren Buffett.<\/em><\/p>\n<\/blockquote>\n

Now that legendary investor and Berkshire Hathaway CEO<\/a> Warren Buffett is retiring at the end of the year, let\u2019s reexamine why he has never invested in Bitcoin<\/a>.<\/p>\n

Never forget, there\u2019s the character Warren Buffett, who is framed as some folksy old-time investor just buyin\u2019 good old stocks like you buy your fast food and television sets! Then there\u2019s the reality where he\u2019s much closer to someone like George Soros, Stanley Druckenmiller who famously \u201cbroke the\u00a0Bank of England\u201d, or Paul Tudor Jones.<\/p>\n

Late last year, regarding his views on Bitcoin, he said<\/a>, \u201cI\u2019ve seen people do stupid things all my life.\u201d<\/p>\n

Savage and based, old man.<\/p>\n

Love or hate him, Buffett is the most successful investor of all time, so let\u2019s see why he won\u2019t invest in BTC:<\/p>\n

Warren Buffett Says You Can\u2019t \u201cAnalyze Fundamentals in the Crypto Space?\u201d<\/h2>\n

Buffett\u2019s method for investing is stubbornly simple: find what makes money (PE Ratios), understand how it works, and only buy it if it\u2019s undervalued. He sticks to businesses with clear models, steady returns, and leaders who know what they\u2019re doing.<\/p>\n

That strategy hits a wall with crypto, where valuation is more opaque<\/a> than fundamental. Buffett\u2019s been blunt\u2014he doesn\u2019t get it, doesn\u2019t want to, and sees no reason anyone else should.<\/p>\n

\"\"<\/p>\n

(Source<\/a><\/strong>)<\/p>\n

But there is a way to value a crypto coin properly; you start by asking these questions:<\/p>\n

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  1. Does anyone use this coin?<\/li>\n
  2. If not, will it be used in the future?<\/li>\n
  3. Is the team qualified?<\/li>\n
  4. What\u2019s the GitHub activity?<\/li>\n
  5. Do developers have incentives ($$$) to keep this thing alive?<\/li>\n<\/ol>\n

    You can\u2019t really predict the future, but you can evaluate viable use cases.<\/p>\n

    Is It True That Bitcoin is Fake Internet Money?<\/h2>\n

    Buffett has made this claim before and is probably right to some extent. More than 90% of cryptocurrencies<\/a> will likely end in either a final crash or a slow bleed.<\/p>\n

    Bitcoin is abstract internet money. But we wouldn\u2019t call it any faker or more speculative than the currencies conjured up by central banks. They print money in very speculative ways to serve government interests and rob you of the value of your savings.<\/p>\n

    In its most basic form, Bitcoin represents an opt-out of inflationary currency printing.<\/p>\n

    Since it\u2019s not only for speculation and has economic utility, we would say it\u2019s much more than \u201cfake internet money.\u201d<\/p>\n

    Why Won\u2019t Warren Buffett Short Bitcoin?<\/h2>\n

    In a CNBC\u00a0article<\/a> from 2018, Warren Buffett explained why he\u2019d never short Bitcoin: \u201cWhy in the world should I take a long or short position in something I don\u2019t know anything about?\u201d<\/p>\n

    Buffett is stuck in the mentality that built his wealth, and who could blame him? He didn\u2019t invest in any information-age company until 2016. It\u2019ll still be a while before blockchain tech has enough public impact for ol\u2019 fuddy-duddies like him to back it wisely.<\/p>\n

    What About Gold?<\/h2>\n

    Warren Buffett recently called gold and silver \u201cunproductive\u201d and their holders \u201centitled.\u201d<\/p>\n

    Maybe this is a place where he and crypto investors can agree. Bitcoin has offered better returns than gold since 2013 and will continue to eat gold\u2019s market cap. Still, his own company hasn\u2019t outperformed gold in 27 years.<\/p>\n

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    After utterly massive outperformance in the years and decades prior, Warren Buffett’s Berkshire Hathaway is about even with simply owning gold since 1998, or about 27 years ago. pic.twitter.com\/1N8k3niPR1<\/a><\/p>\n

    \u2014 Lyn Alden (@LynAldenContact) April 10, 2025<\/a><\/p>\n<\/blockquote>\n