BREAKING NEWS Cal Fire on scene of a vegetation fire in the Lime Saddle Campground Full Story
BREAKING NEWS August Complex: 152 structures destroyed in Trinity County Full Story
SEVERE WX : Fire Weather Watch View Alerts

Warren Buffett says bitcoin is 'rat poison'

Tell us how you really feel, Mr. Buffett.The price of bitcoin took a dive after Warren Buffett renewed his cri...

Posted: May 8, 2018 11:10 AM
Updated: May 8, 2018 11:10 AM

Tell us how you really feel, Mr. Buffett.

The price of bitcoin took a dive after Warren Buffett renewed his criticism of the cryptocurrency - even comparing it to rat poison.

Bitcoin had been closing in on $10,000, but it fell nearly 6% Sunday and was down another 2% Monday to just over $9,300.

Buffett, the CEO of Berkshire Hathaway, has been a bitcoin bear for years. He has often compared the cryptocurrency to gold, saying that both assets are strictly speculative and don't produce earnings and dividends like stocks do.

Related: Warren Buffett is not too worried about a trade war

Before the Berkshire annual meeting on Saturday, Buffett told CNBC that bitcoin was "probably rat poison squared."

During the meeting itself, Buffett joked that "if you had bought gold at the time of Christ and you figure the compound rate on it, it's a couple tenths of a percent." What Buffett was saying about bitcoin was that you can buy it, but it will never produce anything of value.

He also responded to a question from the audience about bitcoin by saying that it and other crytpocurrencies "will come to bad endings."

Berkshire vice chairman and longtime Buffett confidant Charlie Munger was even more blunt.

Related: Here is what happened at this year's Woodstock of capitalism

"I like cryptocurrencies a lot less than you do," Munger said to Buffett. "To me, it's just dementia. It's like somebody else is trading turds and you decide you can't be left out."

Munger has also referred to bitcoin as poison. At the shareholder meeting of The Daily Journal, a newspaper publisher in Los Angeles where Munger serves as chairman, he called it "noxious."

Strong words. But to be fair to bitcoin bulls, both Buffett and Munger have been wrong about the cryptocurrency. Buffett in particular.

He first called bitcoin a "mirage" in 2014 - back when it was trading for about $600. So even with the recent pullback, bitcoin has drastically outperformed the broader market, not to mention Berkshire stock and top Berkshire holdings like Apple.

That's why some cryptocurrency experts think that investors should ignore Buffett's and Munger's repeated bitcoin bashing.

"What I do find monumentally baffling is that two of the world's most successful investors cannot see the intrinsic value of some form of cryptocurrency," Nigel Green, CEO of financial consulting firm deVere Group, wrote in a report early Monday.

"Do they honestly believe that there is no place for, and no value of, digital, global currencies in an increasingly digitalized and globalized world?" Green added.

California Coronavirus Cases

Data is updated nightly.

Confirmed Cases: 790096

Reported Deaths: 15056
CountyConfirmedDeaths
Los Angeles2614466366
Riverside574191162
San Bernardino52649908
Orange522011128
San Diego44925760
Kern31509354
Fresno27769355
Sacramento21628383
Alameda20641374
Santa Clara20511297
San Joaquin19841415
Stanislaus16351337
Contra Costa15958201
Tulare15599256
Ventura12406143
Imperial11583314
San Francisco1080799
San Mateo9598143
Monterey955067
Santa Barbara8880110
Merced8750134
Kings743077
Sonoma7112114
Marin6591112
Solano617555
Madera439162
Placer348841
San Luis Obispo339327
Butte276435
Yolo275454
Santa Cruz22188
Sutter164210
Napa162613
San Benito131011
Yuba11187
El Dorado10734
Mendocino85118
Lassen7350
Shasta70914
Glenn5503
Nevada5116
Colusa5106
Tehama5094
Lake49210
Humboldt4856
Calaveras31114
Amador28616
Tuolumne2214
Inyo18714
Mono1652
Siskiyou1610
Del Norte1361
Mariposa752
Plumas490
Modoc240
Trinity150
Sierra60
Alpine20
Unassigned00
Chico
Overcast
77° wxIcon
Hi: 88° Lo: 60°
Feels Like: 78°
Oroville
Clear
80° wxIcon
Hi: 88° Lo: 60°
Feels Like: 80°
Paradise
Overcast
77° wxIcon
Hi: 81° Lo: 60°
Feels Like: 78°
Chester
Clear
65° wxIcon
Hi: 75° Lo: 46°
Feels Like: 65°
Red Bluff
Clear
77° wxIcon
Hi: 87° Lo: 58°
Feels Like: 78°
Willows
Overcast
77° wxIcon
Hi: 92° Lo: 55°
Feels Like: 78°
A small trough of low pressure moved over the Pacific Northwest on this first day of autumn, and it brought more gusty wind and an improvement to the air quality for most of us. The breezes will continue through the week, and other changes are coming soon.
KHSL Severe
KHSL Radar
KHSL Temperatures

Community Events