Warren Buffett: I would not buy Bitcoins even at $25 apiece

Warren Buffett: I would not buy Bitcoins even at $25 apiece

Billionaire Warren Buffett criticized the first Cryptocurrency at a Berkshire Hathaway shareholder meeting:

“Whether it will rise or fall next year, in five or 10 years, I don’t know. But one thing I’m pretty sure of is that this asset doesn’t produce anything”.

According to the businessman, even those investors who predict Bitcoin’s hegemony consider the Cryptocurrency as a passive asset, which they buy and hold for a long period, hoping to see growth. That said, “no one is short of Bitcoin, and everyone is a long-term holder of the asset.” Buffett explained why he doesn’t see value in Bitcoins by comparing them to income-producing assets:

“If you said you would sell our company for $25 billion 1% of all U.S. farm shares, I would write you a check immediately. If you offered me 1% of all the residences in the country and wanted another $25 billion, I would write you a check immediately. If you told me you owned all the Bitcoins in the world and offered them to me for $25 apiece, I wouldn’t take them because I don’t know what to do with them. And the apartments would bring in rents, the farms would produce food…”

Buffett added that investors have been puzzled for years about how to value Bitcoin – in part because of its ability to perform various functions. In Western markets, especially last year when rates and inflation were rising, BTC has established itself as an investment asset. In other markets, people still see huge potential for using Bitcoin as digital money.

In contrast to skeptic Buffett, MicroStrategy CEO Michael Saylor sees Bitcoin as one of the world’s most scarce assets, while other products can be created endlessly with enough time and money.

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Written by Renat
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