bitcoin In recent years, it has become increasingly adopted in the traditional finance and investment world, but Warren Buffett remains skeptical of BTC.
“I’m Sure Bitcoin Won’t Produce Anything”
Speaking at the Berkshire Hathaway annual shareholder meeting, Buffett said that BTC is not a productive asset because it has not produced any tangible things. While there has been a shift in the community’s approach to BTC, Buffett stated that he still won’t be buying BTC:
“I don’t know if it will rise or fall next year, five years from now, ten years from now. But I’m pretty sure it won’t produce anything. Bitcoin has a magic of its own and people consider many things magical.”
As it is known, BTC advocates cryptocurrency They say it is a passive asset and that investors should wait long and hope that the price will increase. Buffett said that ‘no one’ is short for BTC and everyone is a long-term investor.
“I Wouldn’t Pay $25 For All The BTC In The World”
Buffett explained why he thinks Bitcoin is worthless by comparing it to other assets that produce value:
“If you want me to pay now $25 billion for all farmland in the US at 1% interest, I can write you a check right this afternoon. With my 25 billion dollar investment, I now own 1% of the agricultural lands. If you want another $25 billion for 1% of all apartments in this country, I’ll write you another check, it’s simple.
However, if you say you have all the Bitcoins in the world and you offer me to buy them all for $25, I won’t do that, because what am I going to do with the BTCs? Somehow I will have to resell it to someone else. This is of no use. Apartments generate rental income and farmland produces food.”
Investors have been debating how to attribute value to BTC for years, as BTC can serve different functions. In Western markets, this cryptocurrency is seen as an investment asset, while other people see great potential in this cryptocurrency as digital cash.
Warren Buffett, who made a statement holding 20 dollars in his hand, evaluated this issue as follows:
“For assets to have value, they have to bring something to someone. And there is only one currency accepted. You can make up all kinds of things. We can invent a currency called Berkshire coins. But at the end of the day, that’s money. There is also no reason for the US government to allow Berkshire coins to replace their currency.”
*Not investment advice.