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"Stay Away From Bitcoin. It's a Mirage." - Warren Buffett


The year is 2014, and Warren Buffet has given his take on the future of investment, Bitcoin - "It's a method of transmitting money. It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money? Are money orders? You can transmit money by money orders. People do it. I hope bitcoin becomes a better way of doing it, but you can replicate it in a bunch of different ways and it will be. The idea that it as some huge intrinsic value is just a joke in my view."



Charlie Munger, left, and Warren Buffett



Not much has changed since, Bitcoin has slowly gained respect in the traditional financial and investing sector in recent years, but Warren Buffett remains dubious of the cryptocurrency. 91-year-old Warren Buffett thinks that assets must have a value and that there is only one accepted currency, which is not crypto. 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,” he said, holding up a $20 bill. “And there’s no reason in the world why the United States government… is going to let Berkshire money replace theirs.”



During Berkshire Hathaway's annual shareholder meeting on Saturday, the billionaire claimed that cryptocurrency is not a productive asset and it doesn’t produce anything tangible. “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," he said.


Buffet further added, “It’s got a magic to it and people have attached magics to lots of things. 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 went on to explain why he doesn't think bitcoin has value, comparing it to other things that produce value.


“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.”


He answered questions for five hours at Berkshire Hathaway's annual shareholder meeting in Omaha, Nebraska, the company's first in-person meeting since the Covid-19 outbreak. He did so with his 98-year-old right-hand man Charlie Munger.


Thousands of shareholders from across the world attend the event, nicknamed a "Woodstock for Capitalists," to hear Buffett's investing expertise. Buffett is known among investors as the "Oracle of Omaha."



Resources


Macheel, Tanaya. “Warren Buffett Gives His Most Expansive Explanation for Why He Doesn’t Believe in Bitcoin.” CNBC, www.cnbc.com,

https://www.cnbc.com/2022/04/30/warren-buffett-gives-his-most-expansive-explanation-for-why-he-doesnt-believe-in-bitcoin.html.


“Bitcoin ‘stupid and Evil,’ Berkshire Hathaway CEO Munger Says.” Fortune, fortune.com, https://fortune.com/2022/04/30/bitcoin-stupid-evil-berkshire-hathaway-vice-chair-munger-says-warren-buffett-cryptocurrency/.


“Warren Buffett on Apple, SPACs, Speculation at Berkshire Hathaway Meeting.” Markets Insider, markets.businessinsider.com, https://markets.businessinsider.com/currencies/news/warren-buffett-charlie-munger-berkshire-hathaway-annual-meeting-live-updates-2021-5-1030373616.


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