The Hook
At Berkshire Hathaway’s annual shareholder meeting on May 5, 2018, legendary investor Warren Buffett delivered a blistering verdict on cryptocurrency, calling Bitcoin “probably rat poison squared.” His right-hand man and Berkshire Hathaway vice chairman Charlie Munger was even more blunt, dismissing Bitcoin as “a turd” that he compared to “someone else is trading turds and you decide I can’t be left out.” The comments came during the five-hour question-and-answer session where Buffett and Munger tackled topics ranging from Apple stock to cryptocurrency regulation.
On-Chain Evidence
The timing of Buffett’s remarks coincided with significant market activity on May 5, 2018. According to Kraken Digital Asset Exchange, $215 million was traded across all cryptocurrency markets that day, with Bitcoin at $9,735 (up 0.90%) and Ethereum at $802.00 (up 2.18%). CoinMarketCap data showed the total cryptocurrency market cap at $164.3 billion, with Bitcoin maintaining its position as the dominant cryptocurrency at $9,654.80 and Ethereum following at $792.31.
The Core Conflict
Buffett’s criticism centered on his view that cryptocurrencies are non-productive assets, similar to gold. “It’s essentially not going to deliver anything other than supposed scarcity because you can only mine so many,” Buffett explained at the meeting in Omaha, Nebraska. “So what? What does it produce itself?” This philosophical stance represents a fundamental clash between traditional value investing principles and the emergent cryptocurrency ecosystem that seeks to challenge conventional financial systems.
Market Implications
The Berkshire Hathaway duo’s comments reflected broader market skepticism prevailing in mid-2018 as the cryptocurrency market navigated what would become a prolonged bear market. While prices were still relatively high compared to later periods, the sentiment expressed by two of Wall Street’s most respected investors contributed to the growing debate about cryptocurrency’s fundamental value proposition. Their remarks underscored the divide between traditional finance and the emerging digital asset space.
The Verdict
Buffett and Munger’s “anti-crypto” stance at the Berkshire meeting represented a powerful endorsement of traditional investment wisdom while dismissing digital currencies as speculative instruments without intrinsic value. Their comments highlighted the ongoing tension between established financial institutions and disruptive technologies. The exchange proved particularly significant given Buffett’s status as one of the world’s most successful investors, whose views carry considerable weight in financial markets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency markets are highly volatile and involve significant risk. Always conduct your own research before investing.
buffett calling btc rat poison squared while berkshire sits on $100B+ cash doing nothing. how did that work out for the next 8 years lol
munger calling it trading turds aged like milk. btc went from 9k to 100k+ since those comments
nocoiner_spy berkshire sitting on $100B cash while BTC did a 10x. buffett built his career on identifying value and completely missed the biggest asymmetric bet of the decade
buffett sitting on cash while BTC went 10x is the ultimate value investing cope. even munger admitted he was wrong before he died
munger doubled down on hating btc even at $60k. died without ever admitting the thesis was wrong. legendary investor, terrible call on this one
berkshire_cope munger literally never backed down. went to his grave hating btc. you can respect the conviction even if the call was catastrophically wrong
nocoiner_spy berkshire sitting on 100B+ cash while BTC went from 9700 to 6 figures. the oracle narrative works great except when it doesnt
the funniest part is the $215M daily volume he was shocked by. we do that in 5 minutes on binance now
215M daily volume seems cute now.BTC does more in a single block sometimes
$215M daily volume seemed massive in 2018. now a single whale moving $100M barely makes the news cycle
rat poison squared line from berkshire meeting still gets quoted years later
Buffett called BTC rat poison squared at 9k. its up like 10x since then. wonder what he calls it now
Munger comparing bitcoin to a turd while his portfolio dumps every recession. rich guy humor hits different when youre insulated from inflation
$215M traded that day shows there’s real demand beyond just ‘rat poison’. market speaks louder than opinions.
buffet_counter munger calling it a turd fits the 164b total cap that day
164B market cap at the time looks small compared to today. Buffett’s ‘turd’ comment aged poorly.
crypto_investor 215m volume on that meeting date lines up with btc at 9735
Buffett sitting on $100B+ cash earning nothing while BTC went from 9700 to 6 figures. value investor of the century missed the biggest asymmetric bet in history
Tariq M. berkshire stock did roughly 2x since 2018. BTC did 10x+. even accounting for volatility the rat poison call was objectively terrible
imagine dying on the rat poison hill while BTC hits 6 figures. the cope was legendary
rat poison that did a 10x in 8 years. Munger went to his grave hating it and never admitted wrong. respect the conviction but the call was catastrophic
Buffett missed Apple at $5 and BTC at $9k. maybe the oracle should stick to insurance and railroad stocks
Kjell Bergstrom Buffett missed Apple at $5 and BTC at $9k. the oracle narrative works great in hindsight and terrible in real time
rat_poison_rally_ Berkshire stock roughly 2x since 2018. BTC did 10x+. Buffett built his career on finding undervalued assets and missed the biggest one of the decade
215M daily volume in 2018 was already big money flowing in. calling it rat poison while hedge funds were accumulating tells you who the advice was for
Freja Holm 215M daily volume in 2018 while Buffet called it rat poison. hedge funds were accumulating during that exact meeting. tells you who the advice was actually for
215M daily volume in 2018 seemed massive. now a single whale move barely makes the news. Buffett was shocked by a number that rounds to zero in todays market