May 1st news, in recent years, Bitcoin has been increasingly accepted by the traditional financial and investment circles, but Warren Buffett, known as the “stock god”, insists on a skeptical stance on Bitcoin, even Not willing to spend $25 on all the bitcoins in the world.
At Berkshire Hathaway’s shareholder meeting this year, Buffett explained that Bitcoin is not a productive asset and does not produce anything tangible. Despite the change in public opinion on the cryptocurrency, he himself is adamant about not buying it.
Buffett explained in detail why he disapproves of Bitcoin’s value, comparing it to the tangible returns generated by other types of assets.
Buffett said: “If you say that to get 1% of all farmland in the United States, our group needs to pay $25 billion, and I will write you a check this afternoon. For $25 billion, I can own 1% of the farmland. If You want to sell me 1% of the condos in America for $25 billion, and I’m still willing to write you a check, that’s easy. Now, if you tell me you own all the bitcoins in the world, and you’re willing to pay $25 I’m not going to take it in dollars because I don’t know what to do with it. I’ll have to sell it back to you anyway, because it’s useless. Whereas apartments generate rent and farms generate food.”
Buffett said: “I don’t know if the price of bitcoin will go up or down in the next year, five years, or ten years. But one thing I’m sure about is that it’s not going to produce anything substantial. It has a kind of Magic, and a lot of people are obsessed with that magic.”
Even Bitcoin aficionados tend to view the cryptocurrency as a passive asset, believing that investors would be happy to buy and hold them and hope to see prices rise over an extended period of time. Buffett himself commented on this that no one is shorting Bitcoin because everyone is a long-term holder.
For years, investors have been confused about how to value bitcoin, in part because of its potential to serve different functions. In Western markets, it has established itself as an investment asset, especially over the past year as interest rates and inflation have been consistently rising. In other markets, people see great potential to use it as digital cash as well.
In response, Buffett held up a $20 bill and said: “For an asset to have value, it has to provide something for someone, and there is only one currency that is accepted. You can think of all kinds of ways, we can even issue Berkshire tokens. But at the end of the day, it’s money. There is no reason for the U.S. government to have Berkshire tokens replace their money.”
Buffett and Berkshire Hathaway vice chairman Charlie Munger have both made hostile comments about Bitcoin in the past. Most famously, Buffett referred to Bitcoin as “rat poison.”
Munger, on the other hand, seemed more aggressive, saying: “In my daily life, I try to avoid doing stupid and evil things, to avoid making me look bad in front of others, and Bitcoin fits those three points. First of all, Investing in Bitcoin is stupid because its value can still drop to zero Second, it is evil because it undermines the Federal Reserve System Third, some countries ban Bitcoin, which is a smart move, but It also made us look embarrassed.”
Last month, venture capitalist and billionaire Peter Thiel said that Warren Buffett is the number one enemy to stop bitcoin.
Thiel held up a picture of Buffett during his speech that read “rat poison,” a reference to Buffett’s one use of “rat poison” to refute Bitcoin. Another Buffett quote: “I don’t have bitcoin and never will.”
“We’re going to get bitcoin up 10 or 100 times from now ,” Thiel said , adding that investors such as Buffett can sell the blockchain technology that underpins cryptocurrencies but feel the need to overthrow bitcoin.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/warren-buffett-i-wont-buy-all-bitcoins-for-25/
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