Warren Buffett on recent crypto crash and digital assets

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Buffett weighs in on cryptocurrency collapse

Warren Buffett didn't hold back in his recent interview with Becky Quick that aired in a two-hour special on CNBC Tuesday evening, delivering some of his sharpest criticism yet of the cryptocurrency market following the recent dramatic crash that has wiped out billions in market value.

The Oracle of Omaha, never one to mince words when it comes to digital currencies, offered pointed commentary on the state of crypto markets. "I've said it before and I'll say it again - these aren't cryptocurrencies to me," Buffett stated bluntly. "In my view, they're 'crap coins.' They have no intrinsic value, produce nothing, and people are just hoping the next person will pay more than they did."

The legendary investor's comments come as major cryptocurrencies including Bitcoin and Ethereum have experienced sharp declines over recent weeks, with some digital assets losing more than 40% of their value. The crash has reignited debates about the long-term viability of cryptocurrency as an investment vehicle.

When pressed about whether he sees any value in blockchain technology separate from cryptocurrency speculation, Buffett acknowledged the potential of the underlying technology but remained steadfast in his skepticism of digital coins as investments. "The blockchain may have its uses, but buying these coins thinking they're going to make you wealthy? That's just speculation, pure and simple," he explained.

Buffett drew comparisons to productive assets that Berkshire Hathaway favors: "If you own a farm, it produces crops. If you own an apartment building, it produces rent. If you own a business, it produces products or services. But if you own Bitcoin, you own nothing that produces anything. You're just hoping someone else will pay more for it tomorrow than you paid today."

The billionaire investor also addressed the recent wave of retail investors who have suffered significant losses in the crypto downturn. "It pains me to see people, especially younger investors, putting their hard-earned money into something that I fundamentally believe has no underlying value," Buffett said. "These 'crap coins,' as I call them, have enriched their creators and early speculators, but they're going to leave a lot of people hurt."

Despite his harsh criticism, Buffett admitted he understands the appeal. "I get it - the idea of getting rich quick is seductive. But real wealth is built slowly, through owning pieces of productive businesses that generate earnings year after year. That's been true for centuries, and it'll be true for centuries to come."

The interview also touched on Berkshire Hathaway's continued search for acquisition targets and the company's growing cash position, which Buffett noted could exceed $400 billion - money he refuses to deploy into what he sees as speculative bubbles, including cryptocurrency.