Ever since the inception of bitcoin, Warren Buffet has been critical of the nascent industry. He recently stated that he does not have any crypto in his passion. But, Tron (TRX) founder Justin Sun begs to differ.
On February 24, while he was speaking to CNBC reporter Becky Quick, the legendary investor insisted that he has no crypto in any of his portfolios. He also derided its supposed lack of purpose adding:
“I don’t own any cryptocurrency. I never will […] You can’t do anything with it except sell it to somebody else.”
Sun said in a February 25 tweet that he had given the billionaire investor some cryptos. He also noted that blockchain data proves that Buffet has not yet moved any of his gifts of crypto assets:
“The cryptos $BTC/$TRX Mr. Buffett owns remain intact w/ #blockchain proof, which is the beauty of blockchain.”
While Buffet still ‘owns’ some cryptocurrency, Sun admitted that he would not define him as a crypto investor. According to Sun, the value of Bitcoin and Tron that he gave to Buffet has now increased by about 20%.
The billionaire investor supposedly received the crypto gift during his famous charity luncheon that Sun won at an auction sometime last year. The two entrepreneurs met at a private, not-for-profit country club in Nebraska. They were joined by other crypto luminaries, including Chris Lee, the CFO of major crypto exchange Huobi, together with Charlie Lee, founder of the Litecoin Foundation.
Financial Giants Criticize Crypto
Warren does not have any interest in cryptos. He justified his lack of interest by saying that virtual currencies have no value. He added that “Bitcoin has been used to move around a fair amount of money illegally.” Notably, he is not the first member of the group that makes up the world’s financial elite to express distaste towards cryptos.
They mostly disapprove of cryptos due to their supposed prevalence in illicit activities. In an earlier instance, Bill Gates stated in February 2018 that cryptos are a rate technology that is continuously causing death in a fairly direct way. He was speaking while referring to drug-related deaths.
Mark Cuban, just like Warren Buffet, sees Bitcoin as having no significant value. At the end of September 2019, he said that he would rather have bananas than Bitcoin since he can at least eat them.
Buffet has no interest in owning crypto
During an interview on February 24, Warren Buffet said that cryptos do not have any value. The fourth-wealthiest person in the world discussed his impression of Bitcoin after a fundraiser where the long-time believer in crypto, Justin Sun, was in attendance.
In May 2019, the two gathered with many others at a fundraiser for the Glide Foundation, which is a charity organization that helps the homeless people living in San Francisco. While speaking billionaire to billionaire, the young Sun told the seasoned Warren to consider investing in cryptocurrencies.
Nonetheless, when asked whether Sun had given him any Bitcoin after their meeting, Buffet replied:
“I don’t own any cryptocurrency. I never will… You can’t do anything with it except sell it to somebody else.”
He also commented that in recent years cryptos had been associated with numerous incidents of terrorism and money laundering. Buffet is a thriving traditional investor. He made a chunk of his fortune from insurance and hedge funds. Today, he has an estimated net worth of around $88.9 billion.
Bitcoin has enjoyed major investments from millionaires and billionaires. However, as Warren Buffet demonstrated it, some of the individuals who made their fortunes using more established means are now hesitant to accept cryptos. Mark Cuban, the billionaire who became famous through the dot-com bubble, has also criticized bitcoin.
But, the crypto industry has had its success stories as well. Although Tyler and Cameron Winklevoss may not have gained a significant amount from Facebook, currently, the two now have a cumulative net worth of at least $1.4 billion after launching their crypto exchange Gemini.
Michael Novogratz is another wealthy individual active in the crypto world. He has invested about 30% of his fortune in cryptos since 2015. Sometime in 2017, he announced a $500 million cryptofund that comprises of $150 million of his fortune. Novogratz is now a prominent pundit on Bitcoin’s price movements.