Bitcoin pulls back from $10K; Buffett, Munger, and Gates hammer away

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By design, Bitcoin price and other cryptocurrencies like it are very hard to anticipate in terms of value.

On Monday, during a joint interview in Omaha on CNBC's "Squawk Box" with Berkshire Chairman Warren Buffett and Director Bill Gates, Munger said bitcoin is "worthless, artificial gold" involved in "a lot of illicit activity". The old-school duo called Bitcoin "rat poison" and "turd" earlier during the event.

"Not everybody is right all the time", he told the news source, further suggesting that that knowledge about technology is not in Buffett's "circle of competence". In other words, stocks can generate profits from their business, farms produce crops, etc. Bitcoin (BTC-USD) and other cryptocurrencies, for that matter, are therefore only valuable because of investor interest.

On the subject of ICOs, he considers them to be speculations of a insane variety.

"Finally, when queried about his opinion of Goldman Sachs" decision to launch a trading desk later this year, Munger said that he didn't expect every investment bank to agree with his own thoughts.

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"In terms of cryptocurrencies, generally, I can say with nearly certainty that they will come to a bad ending", he added. He also said that bitcoin is a "greater fool theory" kind of investment.

However, considering that Berkshire Hathaway's largest holding at this point is Apple who are largely known for their successful smartphones, Buffett admitted that he made the wrong decision regarding companies like Amazon and Google.

In the same interview, Gates admitted that someone had given him Bitcoin for his birthday in the dim and distant past, but the multi-billionaire sold it after a couple of years.

He added: "To me, it's just dementia". Bitcoin and ICOs, I believe completely [they're some] of the crazier, speculative things. At the moment, the most important virtual currency in the market is being traded around $9,400. Unlike many online publications, we don't have a paywall or run banner advertising, because we want to keep our journalism open, without influence or the need to chase traffic.

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