Warren Buffett – the legendary investor and CEO of Berkshire Hathaway – announced his retirement at the end of the year after turning the company into one of the most profitable businesses in the world with a profit of 5,500,000% since he took charge. Nevertheless, he remains notorious for his harsh criticism of Bitcoin. Will his departure open up new opportunities for crypto? Let's analyze in detail.
Buffett's Retirement: Journey and Perspective on Bitcoin
At the annual shareholder meeting last weekend, 94 years old, he revealed his decision to step down as CEO of Berkshire Hathaway at the end of the year. He is an extraordinarily successful investor but has always maintained a negative attitude towards Bitcoin. In 2018, during an interview with CNBC's 'Squawk Box,' he called Bitcoin 'rat poison squared,' asserting it cannot exist as a unit of value. Previously, he predicted that cryptocurrencies 'will certainly end badly,' although it was unclear when. He refused to invest in or short Bitcoin, saying: 'I’ve had enough trouble with things I think I know, why would I take a chance on something I don’t?'
In 2023, as Bitcoin reached new highs, Buffett still called it a 'gambling token,' arguing that investors are just chasing easy money like playing roulette. He stays away from technology and commodities like gold, oil, and has only invested in Apple since 2016 – now making up the majority of his portfolio.
Progressive View on Blockchain
Despite criticizing Bitcoin, Buffett has gradually changed his perspective on blockchain technology. In 2019, he acknowledged that blockchain is 'important' on #CNBC , although he still considers Bitcoin an 'illusion.' This view aligns with financial leaders like Jamie Dimon (JP Morgan) and Larry Fink (BlackRock), who have opposed Bitcoin but later launched crypto initiatives (Fink now supports Bitcoin, Dimon still does not). At the famous dinner in 2020 with Justin Sun – the founder of Tron, Buffett said Bitcoin is just a 'shell for exchanging value,' not reflecting the value of blockchain, but acknowledged that crypto companies will endure long-term.
Impact on the Crypto Market
Buffett's retirement brings many signals:
Increasing confidence: The departure of a well-known critic could reduce negative psychological pressure, supporting the price of Bitcoin and altcoins like Ethereum.
Encouraging adoption: Buffett's more positive view on blockchain (similar to BlackRock with the ETF attracting $1.8 billion last week) could encourage institutions to participate.
Short-term risks: The lack of Buffett's leadership could cause volatility for Berkshire Hathaway, indirectly affecting the cash flow of crypto funds ($3.4 billion last week).
Future Outlook
Although Buffett does not invest in Bitcoin, the crypto industry is thriving with treasury strategies (holding 555,450 BTC) and projected to accumulate $330 billion by 2029 (Bernstein). His departure could pave the way for a new generation to embrace digital assets, especially in the context of a more friendly U.S. policy under $TRUMP .
Conclusion: Will Bitcoin Shine After Buffett?
Warren Buffett retires after calling Bitcoin a 'rat poison squared' and 'gambling token,' but a more positive view on blockchain suggests a change. With the price of Bitcoin rising 47% in the past year and the market thriving (ETFs attracting $1.8 billion), his departure could be a positive signal for crypto in the next 3-5 years. Investors should closely monitor to seize opportunities.
Risk Warning: Investing in crypto carries high risks due to price volatility and legal uncertainties. Please consider carefully before participating.