This Is Why Warren Buffett Despises Bitcoin

Warren Buffett and his long-time business partner, Charlie Munger, hate Bitcoin so much they've called it, "evil", and even "rat poison". 

So what gives? 

Many investors fear if titans like Warren Buffett and Charlie Munger don't embrace Bitcoin, there's no chance of adoption. 

This simply isn't true. Let's break everything down: 

Why Warren Buffett and Charlie Munger despise Bitcoin: 

These two men have spent their careers building wealth by doing, "value investing". Value investing is simply buying shares of companies with healthy cash flows, growing revenue streams, balance sheets with assets and few liabilities, and stocks they believed to be undervalued. 

And it's worked. 

In fact, they've achieved extraordinary success. Calling them foolish or naive for declining to invest in Bitcoin or other cryptos would be... well, foolish and naive. 

However, there is a sector of the economy that is notably missing from much of their portfolio: Tech stocks.

Warren Buffett and Charlie Munger have consistently stated they don't invest in businesses that they don't understand. 

This is the reason why Warren Buffett has never invested in Bill Gates's (Buffett's best friend) business, Microsoft. 

Microsoft is another wildly successful company Warren Buffet has declined to invest in. He had all the access in the world to Bill Gates and yet he still refused to invest. 

The only exception to this rule was Berkshire Hathway's investment in Apple stock. 

Knowing Buffett and Munger's position to avoid stocks and assets they don't understand, why in the world would they invest in Bitcoin? 

The two gentlemen, while we respect them a great deal, have demonstrated a lack of understanding on what Bitcoin is and what it means for the world. 

Buffett and Munger will likely never invest in Bitcoin... at least directly. 

Whether or not they realize it Berkshire Hathway has a fair amount of exposure to Bitcoin in their portfolio. The company owns shares of JPMorgan & Chase, Nubank, Bank of America, and others either have Bitcoin exposure or offer crypto services. 

Will Warren Buffett's hardline position hold Bitcoin adoption back? Unlikely. 

Financial services, institutions, retail investors, and nation-states are rapidly accelerating their adoption of digital assets. 

Warren Buffett will continue doing what's worked for him and likely succeed.

Buffett doesn't need Bitcoin and Bitcoin doesn't need Buffett.