Warren Buffett terms bitcoin a 'gambling device' but sees promise in blockchain

Warren Buffett's, the famed value investor's, aversion towards bitcoin is not new. He reiterated his disdain towards the cryptocurrency and termed it a 'gambling device', according to a report by CNBC.

Talking to reporters ahead of Berkshire Hathaway’s annual meeting, he said, "It’s a gambling device... there have been a lot of frauds connected with it. There have been disappearances, so there is a lot lost on it. Bitcoin has not produced anything."

He added that the cryptocurrency had no investment value for him.

Comparing bitcoin to the button on his jacket, the Oracle of Omaha said, "I will tear off a button here. What I will have here is a little token...I will offer it to you for $1,000, and I will see if I can get the price up to $2,000 by the end of the day... But the button has one use and it has limited use."

However, he acknowledged that blockchain, the technology on which bitcoin is built, has some potential.

“Blockchain...is very big, but it didn’t need bitcoin. JP Morgan, of course, came out with their own cryptocurrency, ” Buffett said on May 4.

On the question that if he would get involved in blockchain related projects, Buffett said there was no such plan.

“We are probably doing it indirectly, but no, I wouldn’t be the person to be a big leader in blockchain,” he said.

Bitcoin is currently trading around its 6-month high, at $5,684, however, there is no clarity on what is fuelling the rise.