Buffett doubts the possibility of bitcoin becoming a global reserve currency

Berkshire Hathaway CEO sees no other reserve currency than the US dollar in the near future

08.05.2023 - 13:10

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What’s new? Bitcoin has no chance of becoming the world’s reserve currency even amid the loss of public faith in the US dollar, Warren Buffett, the founder of Berkshire Hathaway, said at the annual shareholders meeting. Although the billionaire criticized the actions of the US Federal Reserve System (Fed) he also doubted that any other currency could acquire the status of a reserve currency.

Material on the CNBC website

What other statements have been made? According to Buffett, it is unlikely that the US dollar will lose its status as the world’s reserve currency, despite concerns about raising the national debt ceiling. However, the founder of Berkshire called the continuation of further printing of new money by the Fed “madness” and a counterproductive step.

Vice Chairman Charlie Munger in his speech compared the management of the national debt in the US and Japan. He admired the actions of the Japanese government, which buys back most of the national debt and common stock, but said the US should not try to imitate it.

“In Japan, everybody’s supposed to suck it up and cope,” Munger noted.

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Buffett is known for his skepticism of cryptocurrencies. In April, he called bitcoin a “gambling token” and said the asset “doesn’t have any intrinsic value … but that doesn't stop people from wanting to play the roulette wheel.”

Last May, the billionaire said that he did not see any value in bitcoin because the asset did not produce anything. However, he noted that having some cryptocurrencies in a portfolio can provide an advantage when used for lending or as collateral, but they are still “highly speculative and have not broken into the mainstream like bitcoin.”

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