Bitcoin skyrocketed 750% since Warren Buffett called it ‘rat poison’ in 2018. Why was he cautious?

Synopsis

Bitcoin has surged around 750% since Warren Buffett called it “rat poison squared” in 2018, despite his longstanding concerns about cryptocurrencies. The digital asset has since hit record highs above $126,000, driven by growing institutional and investor interest, before correcting sharply. Here’s why Buffett remained cautious about Bitcoin.

Bitcoin has recently seen some sharp spikes amid renewed interest in cryptocurrencies, but investors often remember why market legend Warren Buffett disliked it, going so far as to call it “rat poison”.

Bitcoin has gained more than 7% in a month, with fresh investor optimism briefly pushing the digital currency over $88,000 last week. The first decentralised cryptocurrency has now seen some consolidation and trades near the $84,000 mark.

Bitcoin is probably rat poison squared: Warren Buffett

Back in May 2018, Bitcoin was trading at a humble $9,850 when Warren Buffett was asked for his views on the digital asset. While the level seems marginal when compared to today’s massive price, Bitcoin had seen its fair share of jump even till then. The currency had soared from $0 in 2010 to near $10,000 back then, with investors growing more and more curious about the digital asset following stellar returns.

Crypto TrackerTOP COINS (₹) Ethereum260,956 (2.63%)XRP145 (1.86%)Bitcoin8,070,516 (1.4%)BNB73,494 (0.36%)Tether96 (0.04%)Buffett however didn’t mince his words while expressing his distaste for Bitcoin. It is “probably rat poison squared”, he said while speaking to CNBC at Berkshire Hathaway’s 2018 annual shareholder meeting. Charlie Munger, Berkshire’s then vice chairman and long-time Buffett collaborator, said during the meeting that trading in cryptocurrencies is “just dementia.”

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In January of the same year, he said he can almost certainly see a bad ending to the cryptocurrency. “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. If I could buy a five-year put on every one of the cryptocurrencies, I would be glad to do it but I would never short a dime’s worth,” he said.

The legendary investor reiterated his bearish view on cryptocurrencies in 2021. During Berkshire Hathaway’s annual meeting, he avoided a question on Bitcoin as he didn’t want to get grief from everyone who is long bitcoin, relative to the few people who are short the digital asset.

Bitcoin is useful to kidnappers and extortionists: Charlie Munger

His long-time partner Charlie Munger meanwhile called bitcoin a “financial product invented out of thin air.” “Of course I hate the bitcoin success…I don’t welcome a currency that is so useful to kidnappers and extortionists,” he said, adding that the “whole damn development is disgusting and contrary to the interests of civilisation”.

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While the legendary investors sounded the alarm, Bitcoin skyrocketed around 750% since 2018. The digital currency has massively surged to an all-time high of more than $1,26,000 in October, 2025, driven by peak optimism following US President Donald Trump’s comments backing the cryptocurrency. It has now significantly corrected from those levels.

Disclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.

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