Bitcoin (BTC) has gained more and more attention in the traditional finance and investment world in recent years, but billionaire investor Warren Buffett remains skeptical and opposed to BTC.
Speaking at the Berkshire Hathaway annual shareholder meeting, Buffett claimed that the leading crypto BTC is not a useful asset because it has not produced anything tangible. Although there is a positive change in the approach to Bitcoin globally, Buffett still said that he will not buy BTC.
"I don't know if it will go up or down next year, in five years, in ten years. But I'm sure it won't be successful in the long run. Bitcoin has a magic of its own and people consider many things magical."
Bitcoin advocates hope that the leading cryptocurrency is a passive asset and investors wait for a long time, hoping that the price will increase. Buffett stated that 'no one' is in a short position for BTC and everyone is a long-term investor. Buffett explained why he thinks Bitcoin is worthless by comparing it to other assets that produce value.
"If you want me to pay you $25 billion for all the farmland in the US now at 1 percent interest, I can write you a check right this afternoon. With my $25 billion investment, I now own 1 percent of the farmland. I own 1 percent of all the apartments in this country." If you want another $25 billion for i, I'll write you another check, it's very 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? "I'll have to sell it to someone else again. It won't help. Apartments generate rental income and agricultural areas produce food."
Since Bitcoin can serve different functions, investors have been debating how to add value to BTC for years. In Western markets, BTC 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 that is accepted. You can make up all kinds of things. We can make up a currency called Berkshire coins. But at the end of the day, that's money. The US government's Berkshire coins are replacing their own currency. There is no reason to let him take it."