May 1st news, in recent years, Warren Buffett (Warren Buffett), known as the “stock god”, insisted on a skeptical stance on Bitcoin, and was even reluctant to spend $25 to buy all the Bitcoins in the world.
At Berkshire Hathaway’s shareholder meeting this year, Buffett explained,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 America’s condos 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 bitcoin in the world, and you’re willing to pay $25 dollar price shot,I won’t accept it because I don’t know what to do with it. I’ll have to sell it back to you anyway because it’s useless. Apartments can generate rent, and farms can generate food. “
Buffett said: “I don’t know whether the price of bitcoin will rise or fall in the next year, five years, or ten years. But one thing I am sure of,That is it doesn’t produce anything substantial. It has a magic power that many people are obsessed with. “
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 puzzled over 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 for using 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’s 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 calls Bitcoin ‘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 all three. First, 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.
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