Renowned investor Warren Buffett has maintained a skeptical stance on cryptocurrencies such as Bitcoin for as long as they have been in the market. During the recent Berkshire Hathaway annual shareholder meeting in Omaha, Nebraska, he was once again asked if his views on Bitcoin have evolved. Buffett, however, stood by his convictions.
Buffett expressed his views by stating, “Whether its value goes up or down in the coming years, I can’t predict. But one thing I am certain of is that it doesn’t generate any income, it doesn’t produce anything tangible.” He emphasized that while Bitcoin may have a certain allure, people tend to assign mystical qualities to various assets.
Even if he were offered all the Bitcoins in the world for $25, Buffett stated that he wouldn’t accept the offer because it would serve no practical purpose for him. He humorously added that eventually, he would need to sell it back, possibly to the same people, as it doesn’t have any inherent value or utility. Instead, he highlighted his preference for investments in tangible assets such as US farmland. Buffett mentioned that investments in properties like apartments generate rental income, while farms produce essential food items.
Buffett further discussed the concept of value, noting that some assets hold value without directly generating tangible goods. He used the example of a valuable painting that may retain its worth over centuries. However, he stressed that for an asset to have true value, it must offer some kind of utility to someone. Buffett declared money, like the US dollar, as the ultimate currency with universal acceptance, emphasizing that any other form of currency is merely a concept. He showcased a $20 bill as an illustration of the stability and universal recognition of traditional currency.
Warren Buffett gives his most expansive explanation for why he doesn’t believe in Bitcoin cnb.ci/3szFdQ8
— CNBC International (@CNBCi) April 30, 2022
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