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Warren Buffett: Bitcoin Is An Asset That Creates Nothing | CNBC

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Berkshire Hathaway CEO Warren Buffett speaks to CNBC's Becky Quick about what he thinks about bitcoin and the cryptocurrency markets. For more of Warren Buffett's wit and wisdom visit https://Buffett.CNBC.com » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Find CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC Warren Buffett: Bitcoin Is An Asset That Creates Nothing | CNBC
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Text Comments (2052)
LoveTech (15 minutes ago)
What does Gold produce, Buffet?
Stanislav (11 hours ago)
i come here to see the comments , im ready with my boba tea...
BlackCanvas (1 day ago)
Bitcoin can't be compared to a stock with earning statements lol... bitcoin is a digital store of value in countries that have no banks..... Yes bitcoin speculation drives price currently. I would like to ask buffet what he thought of ADA as a digital asset. He would grumble..." WTF is that..does it produce anything"? Yes, digital asset universities in India ...and you should enroll your great grand kids so they can trade with them in the future.
Vonte 352 (1 day ago)
Bitcoin is only worthless bec there no government backing it up especially U.S government but I bet soon as he here that government gonna backup bitcoin he will have different opinion on it.
Jethro Roissing (3 days ago)
Ginger tea is good for your voice.
Brian Ploszay (4 days ago)
I agree. But fiat currencies are also a "fiction" of sorts.
Gbenro Oduyela (4 days ago)
In other words, bitcoin only has the value you put on it. Why not just trade currencies?
Kirsty (3 days ago)
"Why not mail in your comment?" - Hahahaha
Fred Head (3 days ago)
You missed open source, decentralized, permissionless, borderless and cannot be counterfeited. Look at the Protocol not the price. Why not mail in your comment?
PLTbyCormie (5 days ago)
The US dollar doesn’t create anything either..when it’s crashes because of the deficit and crumbling economy it will be worthless paper ..it’s just hard for any billionaire to even conceive that they could actually have a currency that one day people won’t consider as the most valuable currency
quartytypo (5 days ago)
Buffet made all his money playing roulette in Las Vegas.
Angelo B Hall (5 days ago)
While I understand what hes saying things like this you have to be at the Beginning of the market . If Buffet didn't invest in Coca Cola or Apple etc earlier he would not have the majority of the money he has today. Don't invest what you are not prepared to loose . Gold Backed Coin KBC interested in a share click the link now http://bit.ly/KaratCoin
cuddabutta derk (6 days ago)
https://youtu.be/95-yZ-31j9A
Till (6 days ago)
So true
Ker Ruys (7 days ago)
Nah, this old hag is spreading the FUD to buy on the dip. we all know he's accumulating bitcoins under the table. you fools should know that..This man wants us to stay poor for the rest of our lives. Let's see 3 to 5 Years from now I will come back here and I will buy your life 0.000000120 btc!
kashiandevs (7 days ago)
Warren is a very smart investor, not to mention that he has the means to afford every type of advisor for technology he might not understand, and when he takes a strong stand about something, it's worth noting, because it's an educated and calculated decision. It's simple, blockchain is revolutionary and will inevitably change 'money'. Bitcoin is the first to make this technology visible, so people flocked to it. But blockchain is not limited to bitcoin and there will be (already are) other alternatives that do the same thing (potentially better in the way of being integrated into existing financial systems), so eventually, when this technology becomes the backbone of the finance industry, bitcoin will be one among many cryptocurrencies and probably not even the best. It will never be worthless, given its now cult status as well as limited availability. But it's not going to (hasn't already) retain its astronomical value.
MyMagic LouLou (7 days ago)
I think i can understand what warren buffet talking about. I am just wondering if bitcoin is currency for technology, like online shopping. But i wonder if the owner shop prefers payment like USD or his local currency. Those comment from warren buffet make me more certain to ignore bitcoin mania.
Alpha Omega (9 days ago)
Same with money and stocks boy and in particulary derivatives
Suryadi Wirija (9 days ago)
Anyone makes return in Bitcoin now? (Mar'19) 😂
Suryadi Wirija (3 days ago)
+Fred Head why i never saw you appeared in Forbes 500 or similar else?
Fred Head (3 days ago)
Yes. We are up 50000% in 8 years. Why not mail in your comment? 😂
skankhunt 42 (9 days ago)
Picassos paintings dont create anything either
AmFilms123 (7 days ago)
Picasso's painting are not meant to be used as mass currency. BTC was meant to be but is being used for an entirely different purpose.
Han Sagan (10 days ago)
Besides, Buffet’s got a huge stake in BYD, battery / electric car giant.. who is going to be running a token ecosystem and (quite possibly) a NODE on Vechain.. LoL
Han Sagan (10 days ago)
Didn’t Buffet trash the internet and later social giant Facebook IPO? He’s ready to be put out to pasture on that farm of his, much respect to the old guard..
Han Sagan (10 days ago)
Buffet has clearly not investigated (or admitted to investigation) Vechain.. the tokenomics and use cases are revolutionary..
Davinder Arora (11 days ago)
Blockchain is reality now and will replace most of legacy banking system in 2019 and social/governance systems soon. Please check if below social moral principles can help in the core fabric this revolution 1. One should always be ready to accept truth and to renounce untruth. 2. All acts should be performed after deliberating what is right and wrong. 3. The prime objective of new Society is to do well to the world, that is, to promote physical, spiritual and social good of everyone. 4. Our/Every one conduct towards all should be guided by love, righteousness and justice. 5. We should dispel ignorance) and promote (knowledge). 6. No one should be content with promoting his/her good only; on the contrary, one should look for his/her good in promoting the good of all. 7. One should regard oneself under restriction to follow the rules of society calculated to promote the well-being of all, while in following the rules of individual welfare all should be free.
Andreas Gwen (12 days ago)
You should contact @tolya_anatolyy on Instagram to purchase a fast and reliable btc generator It’s really worth it guys I recommend him
JEAN GREY (12 days ago)
He is dead wrong. It provides a service to exchange value in the society, just like any other centralized currency. And it has nothing to do with the speculative rise/fall of its market value..
Noneya Business (13 days ago)
The Uber/Lyft bubble is going to be fun to watch burst.
Friday’s are cool (15 days ago)
Micheal Burry 06’ “Everyone’s wrong, the housing market isn’t what they think it is.” Buffet just doesn’t know. They didn’t even discuss what bitcoin does. It eliminates fiat currency forever.
Friday’s are cool (15 days ago)
The big boys hate bitcoin because they can’t control it
Hendri Ridho (15 days ago)
"Be greedy when others are fearful -he said ;;)"
Steven Madara (17 days ago)
#KevinChristian
Nayan Mipun (21 days ago)
Well Warren Buffett is a old man now, he does not understand, Bitcoin is like a bank to store money in Bitcoin online even if you do not use it for money transfer
Nayan Mipun (15 days ago)
+Robby Khullar read again
Robby Khullar (15 days ago)
???????????????!!!!!!!!!!!!!!!!
Craig Mackey (22 days ago)
Hey Buffet, crypto currency is just that, a currency. It's not a security or stock, stop trying to compare the two.
Kevin Connolly (22 days ago)
bitcoin is not an asset its a currency like the dollar but far better and advanced does the dollar produce? no. it actually goes down
pawan sharma (23 days ago)
I am from india , well i wanna say that Bitcoin creates nothing i dont think so , it creates financial independence, it creates free money that belong to people rather than to the government whose monetary policy is not pegged to the gold and is not hard money anymore .. bitcoin can be compared to real estate where we all know that it is scarce and technology and as it gets even scarce it will become most valuable thing in the world and its the technology that bypass the central bank to transfer value .. the next person pays more in real estate too coz the piece of land is limited and thats how the system works .. well rather than looking at technology , he is addressing the speculation in bitcoin market thats going ..
Deplorable Me (23 days ago)
Buffet is brilliant, but I believe he is wrong on this one. The halving of 2020 will lead to a surge, similar to the ones in 2013 and 2017. He is also wrong about investing into Apple at this time, but that is another case.
Ruani Tafolla (25 days ago)
At least you can wear Gold or use it in electronics.
Adrian Finley (26 days ago)
Says the man that manipulates any money market to his will therefore control and misconception is his by design!
UnitedEarthEmpire (26 days ago)
What happen to the CC if the hypothetical nationwide internet crash come crashing down on just one country? or god forbid the global internet crash?
Pauly Walnuts (26 days ago)
Also volatile currency can't work, if I handed you a 20$ bill and you got home and pulled the bill out of your pocket and it reads 16.50$ you wouldn't accept this very long..
Pauly Walnuts (5 days ago)
+PLTbyCormie Good point. I think I was explaining what a regular person would naturally think, but yeah if enough people get into it and it doesn't have a massive spectrum to swing then maybe but it's basically the 1920's stock market right now, easily manipulated and unregulated. I know it's decentralized and i'm pointing out irrelevant facts for the future markets but this is the current climate.
PLTbyCormie (5 days ago)
Pauly Walnuts it’s volatile because in comparison to the ocean it’s a rain drop right now..but as it grows You will not see or feel the volatility in the same way you do not see the volatility in the current currency that you probably hold
RCM Luxury (26 days ago)
Buffett's staff looks at these comments and laugh. Bums behind computer screens
Nicholas Dalton (27 days ago)
Bitcoin literally created my house and car, as a bitcoin trader you should understand this
Fred Head (3 days ago)
It created my jet ski for just $70 USD
Niran Kovit (27 days ago)
Bitcoin trading really helped me make some more money
Linh Huynh (1 month ago)
Xrp for life lol
Ryan C (1 month ago)
You can't invest in Bitcoin. You speculate on currency and it's exchange ratio with other currencies. Investing is when you do an exchange for rights usually in equity. When you invest in Apple you're buying a stake of a company which actually makes things. Warren Buffet invests he doesn't speculate.
Kyle Pankonien (1 month ago)
What I'm hearing him say is people need to be careful investing in something that does not produce anything. XRP does produce something and has a very real use case. I also heard him say he could whisper something and people would buy in just because he said it. This means He could actually whisper for everyone to look at his right hand while he fills his pockets with his left hand. I'm not falling for the okedoke.... XRP Baby!!!!
P JT (1 month ago)
It doesn’t produce anything. As simple as that.
Fred Head (1 day ago)
Sure it does, Its a Protocol that produces decentralized, borderless, permissionless, cheap, fast transactions. Even more so than the Protocol you used to send that dumb comment
Zdeněk (1 month ago)
I believe in electric car technology. Yet, I don't own a parking lot of teslas. I'd rather buy stock of its manufacturers. Blockchain is an amazing technoogy but I would never speculate on "blockchain's product". I am just looking at that technology developing and maybe looking for someone who can monetize that technology but buying bitcoin is like buying lots of Iphone 1 and waiting for the next Iphone to come at its place.
eppsislike (1 month ago)
Cypto believers, this is Warren Buffet speaking, you really try to defy him in the YouTube comment section? Lol. Please, let this marinate for a minute in your minds.
Popa Stoppa (1 month ago)
🃏I never understood Bitcoin plus NOBODY could ever explain it to me instead Everybody just kept speaking in circles like excited kids talking about NOTHING with no idea... Now I'm glad I stayed the hell away because I like my money to go all the way up not down. Excitement is Exactly How The Sucker'd Everybody Who Couldn't Think For Themselves....🎮🕹🎮🕹🎮🕹....
FreeSky 542 (1 month ago)
This make no sense, he says gold price has stayed the same throughout history. Umm gold was 25$ an oz 50 years ago... that same oz is worth 1,200$ now! The same will be with bitcoin, it will maintain its value even though the dollar inflates. You would be stupid to keep that $25 50 years ago instead of trade it for gold haha
Earth Solutions (1 month ago)
Bitcoin, LTC, ether, etc. create a viable alternative to centralized banking, which is pretty amazing...Buffett made his riches on federal reserve notes which are created out of nothing and backed by nothing. Bitcoin is a viable alternative to paper money which is loaned to governments at exorbitant levels. Why would we not want to change a system that is rotten to the core (the core being the federal reserve) and replace it with a currency that can be traded between anyone in the world without banking fees, federal reserve interest, etc.
bar dan (1 month ago)
no you dont have the farm miss a payment and it disapers
Gone Fishing (1 month ago)
BTC creates nothing, sure ... now JP Morgan wants to create something that creates nothing. This is a new era where things can expand and develop faster than Warren Buffett could think of.
Jake Patterson (1 month ago)
Isn’t the value in bitcoin the security from block chain?
DMANDIOGUARDI (1 month ago)
BAKKT. Fidelity. JP Morgan Token. XRP being used right now. Buffet has said he's on the side of BTC at the end of 2018. 😂😂.
Dylan Parker (1 month ago)
Also how is anything he talks about different from gold of which he is a huge investor in? Gold creates nothing and has no worth it isn’t productive and yet it’s backed by the whole world
Dylan Parker (1 month ago)
Buffet only makes sense because he lives inside the current financial market and bitcoin is disruptive to it Bitcoin isn’t going to exist in the current financial market Capitalism will die the banks will be nationalised and they will use a p2p crypto currency
Dallas Piscopo (1 month ago)
He slams gold more than bitcoin and unfair to compare gold to stock markets. When talking about currencies, gold DOES preserve wealth and more importantly “purchasing power”. An ounce of gold in 1942 cost $35 (about $550 in today’s money) which now provides you $1,300 worth of goods/services . If you’d had left $35 in bank it would now buy you only $2 worth of goods/services. So how does that not preserve wealth? If you’re trying to build wealth, well then yes it would be a good idea to put your money to work with sound investments which do have potential for a high upside. But as far as a sound currency, gold is #1.
ivydude13 (1 month ago)
This is good, this was a good one!
Travis Scott (1 month ago)
The millennials are BIG mad. Bitcoins a joke and so are the people who believe it’s alive.
AFTR drk (1 month ago)
Bitcoins don’t produce anything... that doesn’t sound right... is he saying it had no trade value for goods or produces any gains marketing businesses
Jasminder Singh Jesse (1 month ago)
Over here in Malaysia bitcoin is a big thing , a whole lot of the Malays are investing which is not a stretch for them cause the government is literally spoon feeding them . They have some investor and apparently an expert in investment who is from Poland named Patrick . I had a friend urging me to invest and judging from his presentation reading between the lines I came to the conclusion that it’s not really safe because the foundation is literally made out of nothing so it is just a matter of time before it all comes crashing down. Over here the company is called Exxpat something , I cant recall the name but Mr. Patrick from Poland does make trips here just to show those who have invested the face of the boss.
Alex Kühn (1 month ago)
Where are all the Bitcoin lovers? All gone?
Miss MEME Chin (1 month ago)
FEB 2019. Where are the BTC warriors? 😂 Im reading their comments and im like "y'all eat your words by now" 😂✌🏻 BTC is history 📉
Alex Kühn (1 month ago)
All without money even to pay the internet to defend bitcoin kkkkk
RICW9982 (1 month ago)
Usd is an asset that creates nothing.
Ikaika Arnado (1 month ago)
Bitcoin was destroyed by speculation. Making the distributed ledger concept mainstream however was revolutionary for technology.
Adrian Osler (1 month ago)
bitcoin and all furure variants are doomed to fail in eu uk etc. they are soon to be fully regulated like normal currency
Ryan Long (1 month ago)
Bitcoin price today: $3600 and falling, the fad is over
Kim's Murky Water Vlog (1 month ago)
And so the Currencies and Banking systems .
jo atjo (1 month ago)
The issue is this, bitcoin was promising....today it's not!!! If u don't know why then u don't know what happened to gold.
shaolinWOLF36 (1 month ago)
He knows Bitcoin will be the downfall of banks. We won't need a centralized monetary system like banks anymore. The internet is taking over the world and he's scared. You're a dinosaur but at least you're a filthy rich dinosaur.
#Trending video (1 month ago)
Great Person Buffett. Salute this Man
Ryan Hartung (1 month ago)
This is a terrible argument. Bitcoin is a CURRENCY. Why is he comparing farm land and stocks to a currency? What does the US Dollar produce? What does gold produce? People invest in BTC, USD, CAD, JPY as forex plays expecting that their values will increase relative to the base currency. BTC has a known and fixed supply with a pre determined schedule for increasing supply. It’s a strong form of money and volatility will decline over time. Let’s revisit this video in five years.
FreeSky 542 (1 month ago)
The thing is though, Gold maintains its value, just like bitcoin will. So if the dollar ever drops the bitcoin price will go up... just like gold would and Gold has in the past. He is missing the point.
Lazarus Lazar (1 month ago)
evil putting American in Debts, and want them to stay there!!!, Let us burn all Debts on Holy Altar of God!!!!! include students loan!!!) and medical bills!!! Only USA Citizens are bankrupt due to medical bills (about 1,000,000 Americans per year)
Lazarus Lazar (1 month ago)
evil putting American in Debts, and want them to stay there!!!, Let us burn all Debts on Holy Altar of God!!!!! include students loan!!!) and medical bills!!! Only USA Citizens are bankrupt due to medical bills (about 1,000,000 Americans per year)
Elliott Law (1 month ago)
all the bitcoin fuckbois are mad lol its the truth........
redbugbluebug (1 month ago)
Does this guy knows money, yes! But is he trustworthy, I would say no because you can use the same analogy for exchanging goods for worthless paper money but I don't see him complaining about that!!
Cole Kim (1 month ago)
Well this video aged well.. I don’t get it, crypto fanboys will disregard a billionaire but watch religiously some guy living in his basement with a crypto YouTube channel.
Steven D. Bennett (1 month ago)
Put a hot blue-eyed blonde in a tight pink dress and Warren will talk for hours.
Bino Dino maxilimilanMus royal guard (1 month ago)
Well buffet predicted it bitcoin crashed I guess that’s how he turned 100k into 86 billion
vikas sughand (1 month ago)
Neither fiat currency___ Rothschild listening
Utkarsh Anand (1 month ago)
I’m saying this here for the last time, to make my position clear on bitcoin. First thing that you need to understand is that Bitcoin is sound money. Two of the very important properties of money are that: 1. It needs to be a convenient means of exchanging goods and services. 2. It shouldn’t be allowed to be randomly printed (Because then you risk hyperinflation). As you can see, bitcoin is the better choice for money from an Austrian economics point of view. Keynesian economic model does need inflation to work, but there’s nothing stopping fed from printing money uncontrollably, which is why fiat is a scam. You’ve already seen what happened in Venezuela, Zimbabwe and Weimar Germany. Do note that neither fiat (which is paper currency, not backed by anything of material value) nor bitcoin have material value. Gold, on the other hand, does have material value and satisfies the second property just as well as bitcoin does, but doesn’t satisfy the first property. Gold standard somewhat satisfies both the properties, but is inferior to bitcoin when you compare them quantitatively, in terms of convenience and use cases.
qasion (1 month ago)
Buffet is old school, he knows traditional investment, Gillette, J&J, etc, he has no comprehension of what bitcoin does and how it works, the new generation has no interest in his stupid fiat money and the dollar bill with Washington on it that won't be even worth the paper its printed on.
elftax (1 month ago)
Buffet is right, people are buying Bitcoin as an asset. Money is not an asset, it’s the means to acquire assets. Bitcoin will be useless until its considered money AND used to make payments (in exchange for assets or goods). The current stockpiling of bitcoin will be its downfall, bitcoin is designed to create wealth for those who process bitcoin transactions - if everyone is holding bitcoin as an asset and refusing to use it as money then the whole “currency” grinds to a halt.
Joseph Fuller (2 months ago)
What’s the difference between that and the stock market?
AyyyLmao (2 months ago)
Gold is an investment that creates nothing, it has no value Houses are an investment that create nothing, it has no value Humans that create nothing have no value Thanks Buffet !
K J (2 months ago)
Bitcoin is a scam, it is NOT backed up by anything. It is a pure SCAM@
Red Fono (2 months ago)
That's I am doing... Selling nd buying paint with one leg
Red Fono (2 months ago)
Buffet just send me 0.01 of your portfolio.. Please
chili24137 (2 months ago)
He's comparing apples and oranges, he's comparing a currency to ownership in a business that creates something. I think the most obvious comparison would be forex investing. It's just transferring your money from one currency to another based on how you think that currency will do. It is insane how basically every single comment arguing either side of the issue doesn't realize that. You're all idiots.
Johnny Rubben (2 months ago)
buffet is a smart man , but on the bitcoin he's only half right , while his speculation is true regarding making the next guy to buy it , bitcoin present another banking system (similar to swift) under blockchain , and before it made its insane increase last year people were using it , as the goverments are against cash flow and black economy , it is somewhat of "digital cash" and a lot of people above 40 (not only buffet) are having a hard time on catching digital way of life bitcoin is equivalent to digital life and as the digital gave a lot of industries, jobs and etc so does the bitcoin can give us the rightful duo to the digital life.
GoatZilla (2 months ago)
That’s like saying encryption doesn’t produce anything.
Pan Bal (2 months ago)
Warren is a good man but seems he lives in the past. Societies never were static. Technology changed the world in history many times. So this continue to happening today and will continue to happening for ever. This is the lesson we must take. Bitcoin is not.... a farm !! But dollar also is not....a farm !! So ? Let me make you one question.What is the dept of USA today in dollars ? If you say USA has no dept then i stop here the discuss. But if you agree the USA dept is high, then you can see what Bitcoin is. Is a global currency. No dept.
VentionMGTOW (2 months ago)
People buy gold all the time and it's practically useless. It's just a store of value. So is Bitcoin. If you have Bitcoins properly stored they are yours more than anything else in this world ever can be yours.
Mohammad Raza (2 months ago)
Can someone explain to me his comment regarding gold? Is he saying you'd get a poor return on that investment due to inflation?
Ripple/XRP Preacher (2 months ago)
Xrp will surprise him. He will start using xrp without knowing
Dawn Hodges (2 months ago)
Didn't Warren miss Amazon and Google?? He missed BTC when it was a dollar...it's a math formula supply and demand. Amazon and Google actually produced something btw. I still love the Oracle of Omaha.
MERcurialKG (2 months ago)
haha this guy is right! bitcoin value dropped ever since.
Level Smack (2 months ago)
Yeah 100% useless coin. Alt coins that can compete with PayPal I will look at. Worthless coins that have no future.
Flo- Pride (2 months ago)
So they are just like the The federal reserve? And all these other banks that loan money that they don’t have? What’s the difference?
Gilgamesh (2 months ago)
Translation "I don't want people to have as much money as me, only I can have all the money" ***Goes back to eating junk food***