Seven Years On: Warren Buffett’s Bitcoin Skepticism Faces a Changing Financial Landscape
Seven years ago, legendary investor Warren Buffett delivered one of his most memorable critiques of Bitcoin, calling it “rat poison squared” during an interview with CNBC’s Becky Quick. At the time, it sounded like classic Buffett—blunt, cautious, and rooted in his long-standing investment philosophy: only buy what you understand.
Today, as Buffett, 94, prepares to step down as CEO of Berkshire Hathaway by year’s end, that infamous quote still echoes through the financial world—especially as Bitcoin continues to gain mainstream acceptance and market value.
Buffett’s skepticism toward cryptocurrency began much earlier. In May 2013, at Berkshire Hathaway’s annual shareholder meeting, he admitted, “I don’t know a thing” about Bitcoin. His longtime business partner, Charlie Munger, dismissed it even more forcefully, stating he had “no confidence whatsoever” in Bitcoin becoming a meaningful global currency. At the time, Bitcoin had climbed from $11 to $150 in just six months.
The sentiment from both men never softened. In 2014, Buffett doubled down:
“It’s not a currency. It does not meet the test of a currency. I wouldn’t be surprised if it’s not around in 10 or 20 years.”
He went further, saying, “It’s a mirage… the idea that it has some huge intrinsic value is just a joke in my view.”
To be fair, Buffett’s approach—avoiding assets he doesn't fully understand—has served him exceptionally well. Since 2018, Berkshire Hathaway’s stock price has more than tripled. But Bitcoin? It’s increased in value nearly 13-fold over the same period. While it’s tempting to pit the two investments against each other, they serve fundamentally different purposes and attract different investor mindsets.
Still, the numbers are striking. Had Buffett allocated just 2% of Berkshire’s $57.9 billion in May 2018 into Bitcoin—then trading under $8,500—the firm could have acquired approximately 137,000 BTC. Today, that stash would be worth over $13 billion, increasing Berkshire’s current cash reserves by almost 30%.
In hindsight, missing out on Bitcoin hasn’t hurt Buffett’s empire. But the "what if" scenario lingers. For a man who has created more than 5.5 million percent returns since 1964, not diversifying even slightly into digital assets may feel, to some, like a rare blind spot.
There are also cultural relics like the story of “HyphyMikey,” a BitcoinTalk user who, 12 years ago, posted a 100 BTC gold bar for sale—then worth a few thousand dollars. Today, that same artifact could be worth tens of millions. These early tokens serve as both historical curiosities and cautionary tales about dismissing innovation too quickly.
Buffett's legacy as a master of traditional finance is unshakeable. But Bitcoin’s continued rise proves that even legends can misjudge emerging trends.