Warren Buffett Called Bitcoin A 'Delusion' And Jamie Dimon Isn't A Fan Either, But They Don't Mind The Technology That Lies Beneath

Warren Buffett, legendary stock picker and one of the world’s wealthiest individuals, has refused to include Bitcoin BTC/USD in his portfolio, with an aversion so strong that even shorting the asset is a strict no-no.

Interestingly, the “Oracle of Omaha,” like a few other detractors, does not view the underlying blockchain technology with the same disdain.

What happened: During an interview with CNBC in February 2019, Buffett dissed Bitcoin, deeming it a "delusion" and an asset that lacks unique value.

Notably, amid the Bitcoin bashing, the Berkshire Hathaway CEO referred to blockchain as “important.”

Buffett went on to say that people “smarter” than him explained to him that blockchain does not depend on Bitcoin. He cited the example of a dollar-backed stablecoin, JPM Coin, launched by JPMorgan Chase, potentially implying that blockchains could be used to create non-speculative and valuable assets.

This softer stance was similar to that of JP Morgan CEO Jamie Dimon, who, while holding a negative view about Bitcoin, has time and again recognized the importance of blockchain technology.

It’s worth noting that since this interview, Buffett hasn’t said much about blockchains, so a thorough understanding of his views is still needed.

Why It Matters: Buffett earned notoriety in cryptocurrency circles when he described Bitcoin as “probably rat poison squared” during an interview in 2018.

Months before, at Berkshire Hathaway’s annual shareholder meeting in 2018, he predicted cryptocurrency would have a “bad ending” and said that his company wouldn't even short them.

"If I could buy a five-year put on every one of the cryptocurrencies, I'd be glad to do it, but I would never short a dime's worth."

Price Action: At the time of writing, Bitcoin was exchanging hands at $81,880.34, up 6.29% in the last 24 hours, according to data from Benzinga Pro.

Image via Shutterstock

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