Warren Buffett and Charlie Munger, the legendary investors behind Berkshire Hathaway, have never minced words when it comes to cryptocurrency. To put it lightly, they aren’t fans. Over the years, both have made strong statements against Bitcoin and the broader crypto ecosystem, calling it speculative at best and a scam at worst.
Their skepticism isn’t just rooted in traditionalist thinking—it comes from decades of successfully navigating market cycles, identifying long-term value, and avoiding financial manias that have wiped out countless investors. Both men have seen everything. Charlie Munger, who passed away in 2023 at the age of 99, and Warren Buffett, now well into his 90s, have lived through nearly a century of financial booms, busts, and bubbles. They’ve witnessed the rise and fall of industries, the emergence of transformative technologies, and the euphoria of speculative frenzies that inevitably end in disaster.
Buffett, known as the “Oracle of Omaha,” has built one of the most successful investment track records in history, while Munger’s razor-sharp analysis and philosophical insights have guided Berkshire Hathaway’s decision-making for over half a century. They don’t just invest based on numbers—they have an uncanny ability to feel the pulse of the market, recognize sentiment shifts before they happen, and distinguish between true innovation and financial fads.
When Buffett and Munger speak, the world listens—not because they’re old money, but because their wisdom has been battle-tested in the harsh reality of global finance.
Buffett and Munger on Crypto: The Greatest Hits
Some of their most famous quotes include:
- Warren Buffett: “Bitcoin has no unique value at all.” and “I can say almost with certainty that cryptocurrencies will come to a bad ending.”
- Charlie Munger: “It’s like somebody else is trading turds and you decide you can’t be left out.” and “I think the whole damn development is disgusting and contrary to the interests of civilization.”
Why They Hate Crypto
Buffett and Munger’s main reasons for avoiding crypto are:
- Lack of Intrinsic Value – Bitcoin doesn’t produce anything and has no earnings.
- Regulatory and Fraud Concerns – The crypto space has seen numerous scams and collapses.
- Not a Productive Asset – Unlike businesses, crypto doesn’t generate cash flow or dividends.
They Don’t Just Invest—They’ve Seen It All and Feel the Pulse of the Market
Buffett and Munger’s success isn’t just about picking the right stocks—it’s about their ability to read the world. They don’t operate in a vacuum, obsessing over financial models alone. Instead, they recognize how human psychology, history, and macroeconomic shifts shape financial markets.
They’ve watched speculative manias rise and collapse time and time again. From the post-war economic booms to the inflation crises of the 1970s, from the dot-com bubble to the 2008 financial crash, and even the recent meme stock and crypto frenzies, they’ve seen investors chase euphoria, ignore warning signs, and suffer devastating losses when reality caught up. The difference? Buffett and Munger have always stayed grounded, guided by principles that prioritize long-term value over hype.
They understand that markets aren’t just numbers on a screen—they are driven by emotion, herd mentality, and cycles of greed and fear. They have seen it all before, which is why they don’t get caught up in fads, no matter how loudly advocates insists “this time is different.”
Their skepticism of cryptocurrency doesn’t stem from a lack of technological understanding. They see the excitement, the speculative fervor, and the promises of revolution—because they’ve seen those same promises attached to countless bubbles that ended in financial ruin. Their doubt isn’t about resisting change. It’s about recognizing when optimism outpaces reality.
So when Buffett and Munger dismiss crypto, it’s not just because they don’t believe in it. It’s because they’ve seen what happens when people ignore fundamental value in favour of speculation. And history has proven them right more times than not.
Oh, and in 2023, Warren Buffet made about $37.26 Million every single day. Agree with him or not, it’s a smart idea to at least listen to what he’s got to say. After all, Buffet is widely recognized as one of the most successful investors of all time.
But perhaps his time is up?
The Devil’s Advocate: Are They Just Old and Out of Touch?
There are counterarguments to their skepticism:
- Crypto as Digital Gold – Bitcoin could serve as an inflation hedge.
- Smart Contracts and Blockchain Utility – The technology enables decentralized finance and applications.
- Younger Generations Favour Crypto – Many young investors distrust banks and prefer decentralized assets.
Blockchain: A Game-Changing Technology
While Buffett and Munger dismiss crypto, blockchain technology itself has the potential to revolutionize industries beyond just finance. Blockchain enables decentralized, transparent, and tamper-proof record-keeping. Some key areas where blockchain could be transformative include:
- Supply Chain Management – Blockchain can improve transparency in global supply chains by tracking goods from origin to consumer.
- Healthcare – Secure, decentralized medical records could reduce fraud and improve patient care.
- Digital Identity – Blockchain-based IDs could provide people with secure, portable identities, particularly useful for refugees and underbanked populations.
- Smart Contracts – These self-executing agreements could automate and streamline transactions in real estate, insurance, and legal industries.
The Strengths of Centralized Finance
While crypto advocates push for decentralization, centralized finance (CeFi) offers several undeniable advantages that have stood the test of time. Traditional banking and financial institutions provide structure, accountability, and stability that decentralized systems often lack.
- Accountability and Regulation – Banks and financial institutions operate under strict regulations, ensuring that customers’ funds are protected and that institutions follow laws designed to prevent fraud and misconduct.
- Customer Service and Dispute Resolution – Unlike decentralized finance, where transactions are irreversible, banks offer customer service and fraud protection. If unauthorized transactions occur, customers can dispute them and often get their money back.
- Financial Trail and Compliance – Centralized financial systems maintain clear transaction records, making it easier for individuals and businesses to track spending, comply with tax obligations, and prove financial history when applying for loans or mortgages.
- Stability and Security – While decentralized platforms are prone to hacks and security breaches, traditional banks have robust security measures and government-backed insurance for deposits (such as CDIC insurance in Canada and FDIC insurance in the U.S.).
Why Blockchain May Succeed, But Crypto May Not
While blockchain holds promise, cryptocurrency itself remains a controversial application. Many tokens lack clear utility beyond speculation, and regulatory scrutiny is increasing worldwide. Some concerns include:
- Scalability Issues – Many blockchains struggle with transaction speeds and costs, limiting mass adoption.
- Regulatory Risks – Governments may crack down on crypto, reducing its viability as a financial alternative.
- Central Bank Digital Currencies (CBDCs) – Governments may create their own digital currencies, reducing the need for decentralized cryptos.
- Hype-Driven Markets – Many crypto projects are driven more by speculation than actual innovation.
Tokens That Offer Intrinsic Value and Real Utility
While many cryptocurrencies are purely speculative, some blockchain-based tokens provide intrinsic value by powering ecosystems that produce real economic or technological benefits. Unlike meme coins or hype-driven projects, these tokens have clear use cases:
- Ethereum (ETH): More than just a currency, ETH fuels the Ethereum network, which enables smart contracts, decentralized applications (dApps), and non-fungible tokens (NFTs). The Ethereum blockchain underpins DeFi (decentralized finance), powering lending, trading, and automated agreements.
- Solana (SOL): Solana is known for its high-speed and low-cost transactions, making it a strong competitor to Ethereum for DeFi applications, NFT marketplaces, and blockchain gaming. Its ability to process thousands of transactions per second gives it real-world utility in high-frequency applications.
- Cardano (ADA): Developed with a focus on security and scalability, Cardano aims to provide a decentralized infrastructure for everything from financial applications to supply chain tracking. However, its adoption has lagged behind Ethereum and Solana.
- XRP (XRP): Created by Ripple, XRP is designed for cross-border payments and financial settlements, offering banks and financial institutions an alternative to SWIFT transfers with faster and cheaper transactions. However, regulatory uncertainty (especially in the U.S.) has clouded its future.
- Chainlink (LINK): Chainlink provides decentralized oracles, which allow smart contracts to securely interact with real-world data, such as weather reports, stock prices, or sports scores. This bridges the gap between blockchain and external systems.
- Filecoin (FIL) & Arweave (AR): These projects offer decentralized cloud storage, competing with traditional providers like Google Drive and AWS by letting users rent out unused storage space on a distributed network.
- Helium (HNT): Helium is pretty cool! It rewards users with tokens for operating wireless hotspots, creating a decentralized network for IoT (Internet of Things) devices. Unlike many crypto projects, Helium provides an actual service—long-range wireless coverage.
- Uniswap (UNI): As one of the largest decentralized exchanges (DEXs), Uniswap allows users to trade tokens without intermediaries. The UNI token provides governance rights, letting holders vote on protocol upgrades and fee structures.
Speculative Tokens: More Hype Than Utility?
While some projects offer real utility, others remain heavily speculative with limited long-term value:
- Dogecoin (DOGE) & Shiba Inu (SHIB): These started as meme coins and gained popularity due to social media hype and celebrity endorsements. While Dogecoin has some use cases for payments (like Tesla accepting DOGE for merchandise), neither has a strong fundamental reason for long-term adoption beyond community enthusiasm.
- Decentraland (MANA): MANA is the native token of Decentraland, a virtual metaverse where users buy land and create digital experiences. While metaverse projects were hyped as the future of the internet, demand has cooled significantly, raising questions about long-term viability.
The Bottom Line: Real Value vs. Speculation
While some tokens provide essential services in blockchain ecosystems, many remain driven by hype, speculation, and social media influence rather than actual utility. Ethereum, Solana, and XRP have real-world use cases, while meme coins like DOGE and SHIB rely on cultural momentum rather than technological advancements.
Buffett and Munger would likely argue that even the most “useful” tokens are still speculative compared to traditional investments, but for those looking at the crypto space, distinguishing hype from function is key.
So, Who’s Right?
Buffett and Munger’s concerns aren’t baseless, but dismissing crypto entirely may be short-sighted. While they don’t see value in it, others believe it could reshape finance. Blockchain technology, in particular, is likely to endure even if many cryptocurrencies fail.
For now, don’t expect Berkshire Hathaway to invest in Bitcoin anytime soon—but don’t ignore the potential of blockchain itself.
Oh, and if you’re wondering if Bitcoin is just a Meme Coin of if there’s something more to it, take a look at our other article “Is Bitcoin actually a Meme Coin?”
