Digital Assets: Buffett Wouldn’t Buy All The Bitcoin In The World For $25
Warren Buffett, the legendary investor, roasts the leading crypto…again.
Buffett, who once called bitcoin “rat poison squared,” again had the cryptocurrency in his sights at the Berkshire Hathaway (NYSE: BRK.A) Annual Shareholder meeting on Saturday. He panned bitcoin for not producing anything tangible and therefore called it a “non-productive asset.” (CNBC)
“Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett said. “It’s got a magic to it and people have attached magic to lots of things.”
Money – there’s only one kind
Buffett also attacked the concept of bitcoin as a currency. Holding up a $20 bill, he said: “Assets, to have value, have to deliver something to somebody. And there’s only one currency that’s accepted. You can come up with all kinds of things — we can put up Berkshire coins… but in the end, this is money.”
“And there’s no reason in the world why the United States government … is going to let Berkshire money replace theirs.”
Bitcoin as a store of value? For Buffett, it’s not even worth $25!
Buffett also summarily dismissed bitcoin as a store of value because it could only be transacted by selling out to someone else.
“If you said … for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett said. ”[For] $25 billion I now own 1% of the farmland. [If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check, it’s very simple. Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food.”
Munger too indulges in bitcoin bashing
Charlie Munger, vice chairman, of Berkshire, added to the vitriol. “In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three,” Munger said. “In the first place, it’s stupid because it’s still likely to go to zero. It’s evil because it undermines the Federal Reserve System … and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China.”
Image Credit: Wikimedia Commons
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