Warren Buffett Wouldn’t Buy Bitcoin for $25
Berkshire Hathaway CEO Warren Buffett says he can’t invest in crypto because they lack intrinsic value. During his speech at Berkshire Hathaway’s annual shareholder meeting, Buffett provided the most detailed explanation of why he doesn’t believe in cryptocurrencies.
Although there are tons of digital assets with unique use cases like underlying products, loans, or collateral, Buffett believes they “do nothing.” He said:
“There is magic and people have attached magic to a lot of things.”
He rationalized Bitcoin’s lack of tangible value and referenced agriculture and real estate to have considerable tangible returns. He pointed out that even if he is offered all the Bitcoin for a low price like $25, he will not take it because it lacks utility.
Despite the CEO’s comment decrying digital assets, his company Berkshire Hathaway recently invested $1 billion in a pro-crypto Brazilian bank that offers Bitcoin ETFs, Nubank.
Twitter floods with opposition
Buffett has maintained a critical stance towards Bitcoin over the years, at one point calling the top-ranked digital currency “rat death.” On the other hand, Buffett’s aide Charlie Munger called Bitcoin “dumb” and said its “evil” characteristics make America look terrible. Munger also welcomed China’s ban on crypto mining and trading.
According to Michael Saylor, CEO of MicroStrategy, the continued attack on the asset will act as a marketing strategy.
So I hear Warren Buffett and Charlie Munger are marketing #Bitcoins again…
— Michael Saylor⚡️ (@saylor) April 30, 2022
US venture capital firm Andreessen Horowitz (a16z) co-founder Marc Andreessen called Buffett’s comments “wild.” Tesla CEO and the richest man on the planet, Elon Musk, commented that the 91-year-old billionaire used Bitcoin so many times in his speech.