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Nevertheless, Buffett thinks Bitcoin will continue going mainstream due to the human desire for quick profits.
A veteran American investor with over $104 billion in net worth Warren Buffett is highly convinced Bitcoin has no intrinsic value despite the digital asset outperforming the traditional stock market during the first quarter. In a recent CNBC interview, Berkshire Hathaway Inc (NYSE: BRK) chairman and CEO reiterated his saying that people are betting on Bitcoin via the higher fool game.
Nevertheless, Buffett is invested in Bitcoin technology indirectly through Apple Inc (NASDAQ: AAPL) shareholding. Moreover, Apple receives hefty commissions from Web3-focused applications like Binance exchange among other crypto wallets. Additionally, Apple Pay is used to purchase Bitcoin through several crypto wallets like BitPay in the United States.
In this regard, Buffet has admitted that Bitcoin will continue being purchased by people hoping to make fast profits. The Billionaire says Bitcoin has unleashed the human desire to gamble for quick money.
"#Bitcoin is a gambling token and it doesn't have any intrinsic value. But that doesn't stop people from wanting to play the roulette wheel," says Warren Buffett on #crypto. pic.twitter.com/6MQAiyrS5J
— Squawk Box (@SquawkCNBC) April 12, 2023
Similarly, Berkshire Hathaway Vice Chairman Charlie Munger has spoken harshly on Bitcoin and the rest of the crypto market. While Buffet called Bitcoin a rat poison squared back in 2018, Munger has called on the United States Congress to follow similar regulatory steps like China in banning crypto assets from accessing global liquidity.
“It’s a gambling contract with a nearly 100% edge for the house, entered into in a country where gambling contracts are traditionally regulated only by states that compete in laxity,” Munger wrote in an opinion piece for the Wall Street Journal. “The US should now enact a new federal law that prevents this from happening.”
Bitcoin Disrupts Traditional Investments
According to market data provided by Coingecko, about 174,374 Bitcoins worth over $5.2 billion are owned by publicly traded companies worldwide. MicroStrategy Inc (NASDAQ: MSTR) is the leading public company heavily invested in Bitcoin with a holding of nearly 130k Bitcoins worth about $4 billion at current prices of $30k.
Having registered significant gains during the Covid pandemic and up over 81 percent YTD, Bitcoin price has proved to be a long-term hedge against global inflation. Moreover, Bitcoin outperformed traditional stocks amid the recent United States banking crisis that saw the closure of three regional banks including Signature Bank.
Having identified Bitcoin and other cryptocurrency assets as favorites among retail investors, the United States government has embarked on a journey to regulate the market through the judicial system and executive orders. As a result, the United States federal government intends to launch FedNow instant payment infrastructure before the end of this year, which will enable the rollout of a digital dollar (CBDC).
As countries and companies adopt Bitcoin in their balance sheet, the digital asset is expected to rally exponentially in the coming years fueled by mainstream adoption.