It's one big nonsense. A series of scandals in the crypto world reinforces Warren Buffett's position

Warren Buffett is arguably the greatest investor of all time. But one asset is keeping him up at night. He's been leaning more and more into cryptocurrencies lately. What's bugging the legendary billionaire so much?

The legendary investor and founder of a hyper successful fund hasn't been fond of cryptocurrencies for long. Back in 2018, he was extremely negative about them. He even predicted their complete demise.

"This is just not going to end well," Warren Buffett told CNBC television at the time.

And the current developments are playing into his hands. Bitcoin relatively recently reached a value of almost $70,000 apiece. But since then, the cryptocurrency has erased about 76% of its value and is currently worth about 16,000.

https://www.youtube.com/watch?v=HVm7Pfb0ilY

What is the world's most famous investor's current message to those who are now considering investing in bitcoin?

"If you offered me all the bitcoins in the world for $25, I wouldn't take them," Buffett told CNBC television earlier this year. In fact, Buffett has several fundamental problems with crypto.

It has "no unique value whatsoeverThe wizard
doesn't like bitcoin because he considers it an unproductive asset. Buffett is known to prefer stocks of companies whose value - and cash flow - comes from making things. Cryptocurrencies, however, have no intrinsic value in his view.

"They don't reproduce, they can't send you a check, they can't do anything, and what you're hoping is that somebody else will come along later and pay you more money for them, but then the other person has a problem again."

Although bitcoin is supposed to provide real value as a payment system, this use is still quite limited. Buffett sees the value of bitcoin in the mere premise that someone else will be willing to pay more for it in the future than you are paying today.

He doesn't consider it backed by moneyBuffett
has made a number of extremely snide remarks about bitcoin and cryptocurrencies over the years: 'I don't have any bitcoin. I don't own any cryptocurrency and I never will." As a tradable asset, bitcoin has boomed. But does it meet the three criteria of money? By the most common definition, money is supposed to be a medium of exchange, a store of value and a unit of account. Which, according to Buffett, it is not.

"It doesn't meet the criteria of a currency," the billionaire told CNBC in 2014. "It's not a permanent medium of exchange, it's not a store of value."

But he adds that it is a very efficient way to transfer money anonymously. Which may be more of an attack on the classic remarks about money laundering and illegal transactions using cryptocurrencies.

Buffett has become one of the most successful investors in history by holding stocks he understands. With bitcoin, on the other hand, he himself admits he doesn't understand it that well.

"I only solve problems in sectors I understand. Why on earth would I take any position in something I know nothing about?" says Buffett. He admits it himself, he is aware of it. But he sees the problem with others. People like to gamble, he said at Berkshire Hathaway's 2018 annual meeting.

"If you don't understand it, it excites you a lot more than if you do understand it."

How about you? Do you have an opinion like Buffett's, or do you think this is an opportunity the legendary investor will pass up but you won't?

But the other thing that makes Buffett's stance stronger is the scandals that are rocking the market and the crypto world. Whether it's the Celsius scandal this summer or perhaps the biggest topic at the moment - the fall of FTX.

https://www.youtube.com/watch?v=1bp5S2LKcjQ&t=3s

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Disclaimer: This is in no way an investment recommendation. This is purely my summary and analysis based on data from the internet and other sources. Investing in the financial markets is risky and everyone should invest based on their own decisions. I am just an amateur sharing my opinions.