Buffett Calls Bitcoin ‘Rat Poison Squared’ at Berkshire Hathaway Annual Meeting

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.