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

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.

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.”