The bitcoin has gained ground in the world of traditional finance and investment in recent years, but veteran billionaire Warren Buffett remains skeptical of the biggest cryptocurrency.
Buffett told the annual shareholders’ meeting in Berkshire Hathaway on Saturday that Bitcoin “is not originally a commodity nor does it produce anything tangible.” Despite a shift in public perception of cryptocurrency, Buffett remains reluctant to buy it.
Bitcoin enthusiasts also tend to see cryptocurrency as a asset passive that investors buy and hold, hoping to see a price increase over a long period. Buffett commented: “No one is betting on Bitcoin in the short term, everyone is betting on it for the long term.”
For Investors in More sophisticated cryptocurrencies, some cryptocurrencies offer a way to use them in productively, both through loans and as collateral, to create additional portfolio benefits. However, these coins are still small, highly speculative, and haven’t broken the mainstream like Bitcoin.
Buffett explained why he saw no value in bitcoincomparing it to things that generate other kinds of value.
And he said, “If you say . to get 1% interest on all farmland in the United States, pay our group $ 25 billion, I’ll write you a check this afternoon. For $ 25 billion I now own the ‘1% farmland. If you give me 1% of all the residential houses in the country you want another 25 billion dollars, I’ll write you a check, it’s very simple. Now if you tell me you own all the bitcoin of the world and you offer it to me for 25 dollars, I will not receive it What should I do with it? I’ll have to resell them to you in in a way or another. You won’t do anything. The apartments will generate the rent and the farms will produce food, “according to CNBC.
Investors have been there for years in loss on how to evaluate bitcoin in partly due to its ability to perform various functions. In Western markets it has established itself as asset investment, in particularly in the last year, when inflation rates have risen. In other markets, people still see huge potential for use as digital money.
Buffett continued: “Businesses, to have value, have to give something to someone. There is only one acceptable coin. You can invent all sorts of things: we can put on Berkshire coins . but in the end, this is money, “he said, holding in holding a 20 dollar bill.
He added: “There is no reason in the world for the US government . to allow Berkshire money to replace its money.”
In the past, both Buffett and billionaire Charlie Munger have made hostile comments towards Bitcoin. “In my life, I’ve tried to avoid stupid and evil things that make me look bad compared to someone else,” Munger said. “Bitcoin does all three”.
“First of all, it’s silly because it could potentially go to zero. It is 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 .”
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