Warren Buffett’s ‘fake’ insurance contracts, not Bitcoin (BTC), are the real rat poison, according to Max Keiser
Kraken’s ‘Bitcoin evangelist’ Pierre Rochard recently slammed Warren Buffett, the fourth richest person in the world, for failing to pay business interruption claims during the COVID-19 crisis.
Rochard points to the fact that the value of these insurance contracts is ‘basically zero,’ which is why Buffett is riskier than Bitcoin.
Insurance companies fail to cover losses
Berkshire Hathway, the Omaha-based holding behemoth helmed by Buffett, has a penchant for insurance companies. While its enormous bet on the industry certainly paid off in the past, the COVID-19 crisis poses a major threat to Buffett’s empire despite its impressive balance sheet of $120 bln.
New Jersey lawmakers are currently trying to pass bills that would require insurers to pay business interruption losses caused by the pandemic for businesses with fewer than 100 employees.
U.S. President Donald Trump also urged insurance companies to pay ‘what is fair’ given that some policyholders had been paying a premium for decades.
The real rat poison
The Oracle of Omaha doesn’t mince words when he talks about Bitcoin. During his 2018 with CNBC’s Becky Quick, he famously called it ‘rat poison squared.’
After the highly publicized dinner with Tron CEO Justin Sun, Buffett continued to insist that cryptocurrencies had no value.
RT host Max Keiser, who is known as one of the earliest crypto adopters, quipped that Buffett’s fake insurance contracts are actual rat poison.