Bitcoin has been steadily accepted from the traditional financial and investment world in recent years, but Warren Buffett sticks to his skepticism. Bitcoin..
He said at Berkshire Hathaway’s annual shareholders meeting on Saturday that it wasn’t a productive asset and produced nothing concrete. Despite changes in public perception of cryptocurrencies, Buffett has not yet purchased it.
“I don’t know if it will go up or down next year, five or ten years, but one of the things I’m convinced of is that it doesn’t produce anything,” Buffett said. “It has magic, and people are magicing many things.”
Even Bitcoin enthusiasts tend to see cryptocurrencies as passive assets that investors buy and hold, hoping for price increases over the long term. The buffet itself commented that no “nobody” was running out of Bitcoin. Everyone is a long-term holder.
For more sophisticated crypto investors, some coins offer a way to productively use crypto as a loan or collateral to generate additional portfolio benefits. But they are still young, very speculative, and not as mainstream as Bitcoin.
Buffett elaborated on why Bitcoin wasn’t worth it and compared it to other types of value-creating ones.
“If you … pay $ 25 billion to our group at 1% interest on all US farmland, we’ll write a check this afternoon,” Buffett said. “”[For] $ 25 billion I currently own 1% of the farmland. [If] You give me 1% of all apartments in the country and want an additional $ 25 billion, but I write you a check, it’s very easy. Now if you tell me you own all the bitcoins in the world and you offer it to me for $ 25, what do I do with it, so I won’t take it mosquito? I will have to sell it back to you in some way. Do nothing. The apartment will generate rent and the farm will produce food. “
Investors for years Confused about how to evaluate Bitcoin This is partly because it may provide a variety of features. In the Western markets, interest rates and inflation have risen, especially over the past year, making them an established investment asset. In other markets, people still see great potential for use as digital cash.
“Assets need to deliver something to someone in order to have value. Only one currency is accepted. You can come up with any kind of thing. You can put Berkshire coins. .. But in the end, this is money. “He said with a $ 20 invoice.” And the reason the US government is trying to replace Berkshire’s money with their money is to the world. there is no.”
Both Buffett and Charlie Munger have made hostile comments on Bitcoin in the past. Most famous, Bitcoin is “probably the square of rat venom,” Buffett said. On Saturday, Munger doubled his feelings.
“In my life, I try to avoid stupid and evil things and make them look bad compared to someone else. Bitcoin does all three,” says Munger. “In the first place, it’s stupid because it’s still likely to be zero. It’s bad because it undermines the Federal Reserve … and third, it’s stupid compared to Chinese Communist leaders. I’ll show you. He was smart enough. He banned Bitcoin in China. “
