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Bitcoin Is Nothing But A Gambling Device: Warren Buffett

Bitcoin Is Nothing But A Gambling Device: Warren Buffett
Bitcoin Is Nothing But A Gambling Device: Warren Buffett

While many top investors have come to terms with accepting digital currencies as a form of value storage, Berkshire Hathaway CEO, and investment giant, Warren Buffett, still maintains that cryptocurrencies are a bubble which will burst sooner or later.

In his recent statement, Buffett has termed Bitcoin, the leading cryptocurrency as a ‘Gambling Device.’ According to Buffett, Bitcoins have no intrinsic value and neither do they produce any. It is not the first time that Buffett has wholly disregarded the digital currency. Even when Bitcoins shot to $20,000 in December 2017, he maintained that it is a bubble and will meet its fate soon.

Explaining why bitcoin is a betting device, Buffett said, “People will create a gazillion of them naturally. There’s been a lot of fraud connected with them; there have been disappearances. So there has been a lot lost on it. The bitcoins haven’t produced anything.”

Cryptocurrencies And Online Gambling

Cryptocurrencies have significantly impacted the global gambling industry. A recent research by Rutgers University finds that over 50% of people actively involved with Gambling are also into trading cryptocurrencies. The study published in the journal ‘Addictive Behaviors’ also finds that over 75% of traders and investors who trade in high-risk stocks also trade in digital currencies like the Bitcoins.

Given the fact that the blockchain-based tokens allow for anonymous transactions empowered with distributed ledger technology, they have found multiple use cases in the online gambling industry.

The number of gambling sites and mostly online casinos that accept bitcoins and other major cryptocurrencies have shot up in the past two years. Also, blockchain-based online gambling sites are becoming increasingly popular; however, there is no denying that a lack of regulation does put customers at risk.

Consumers At Risk

There have been several instances of gambling websites accepting cryptocurrencies disappearing in thin air. Recently, a DApp Gambling Platform On The Tron Network Disappeared, and players were left with worthless tokens. DooTron, based on the Tron Network disappeared when over 59 million DOO tokens owned by 1,204 investors were still in circulation.

Also, for regulators blockchain-based decentralised gambling applications are a challenge. Ensuring compliance is increasingly difficult on such networks. Currently, over 50 percent of the DAPPs on the Tron Network – which is also the most popular for DApps – are related to gambling.

Earlier the Japanese government had urged the DApss to stop accepting Japanese customers and regard the local laws. In response to the governments appeal,TRON had said in a press release that they are with the Japanese government in their fight to curb illegal gambling. Online gambling is illegal in Japan.

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About the author

Utsav Kumar

Utsav Kumar

With a masters in literature and passionate about evolving technologies, Utsav has been covering the latest from the world of Blockchain, Artificial Intelligence, and AR for several online and print publications. He strongly believes that these evolving technologies have immense potentials to redefine existing online gambling infrastructures and can dramatically improve standards of customer protection. Utsav covers mostly compliance updates and other latest technical developments that impact the global casino and gambling industry. He can be reached out at utsav_kumar@casino.buzz

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