Why Warren Buffett Has Zero Interest in Bitcoin


Image Source: Getty Images

The Oracle of Omaha has strong feelings about the value of Bitcoin.


Key points

  • Bitcoin inspires a passionate response, even from those who consider it nonsense.
  • Buffett sees Bitcoin as speculative and of no real value.

Bitcoin, the digital currency that operates without the supervision of banks and governments, tends to inspire passion. Some fervently believe that digital currency is the wave of the future and a great way to get rich. And then there are others, like business tycoon Warren Buffett, who distrust cryptocurrency usually.

Buffet’s position

Last month at Berkshire Hathaway’s annual shareholder meeting, Buffett made it clear that he has no interest in Bitcoin being part of his portfolio.

According to the Oracle of Omaha, “I don’t know if it will go up or down next year, or five or ten years from now. But the one thing I’m pretty sure of is that it doesn’t produce anything.” He has magic, and people have given magic to a lot of things.”

where the road forks

Bitcoin serves different functions in different parts of the world. For example, the countries of El Salvador and Panama have each adopted Bitcoin like your coins. In the case of El Salvador, the adoption of Bitcoin did not turn out as expected. According to the National Bureau of Economic Research, once Salvadorans used the $30 bonus they received, 60% got rid of the government Bitcoin wallet. And while the government expected citizens to use Bitcoin to pay their taxes, 99% of Salvadorans chose not to.

Although big names like Elon Musk see potential in cryptocurrencies, Buffett stands firm. The self-made billionaire sees Bitcoin as dangerously speculative with no real value. Buffett has gone so far as to call Bitcoin, “probably rat poison squared.”

For Buffett, it’s about creating value

According to CNBC, Buffett summed it up by comparing Bitcoin to assets that create value.

Our main crypto game is not a token. here’s why

We have found a company that has perfectly positioned itself as a long-term picks and shovels solution for the broader crypto market: Bitcoin, Dogecoin and all the others. In fact, you’ve probably used this company’s technology in the past few days, even if you’ve never had an account or heard of the company before. That’s how common it has become.

Sign up today for stock advisor and get access to our exclusive report where you can get complete information about this company and its advantages as a long-term investment. Learn more and get started today with a special discount for new members.

Begin

“If you said for a 1% stake in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon. (For) $25 billion, I now own 1 % of farmland. (If) you offer me 1% of all the departments 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 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 to you one way or another. It’s not going to do anything. The apartments are going to produce rent, and the farms are going to produce food”.

Buffett believes that investing in Bitcoin is more of a gamble than an investment. “If you want to bet someone else will come and pay more money tomorrow, that’s a kind of game. That’s not investing.”

Does interest decrease?

While it is difficult to gauge the general enthusiasm for Bitcoin, the recent drop in purchases is revealing. Since hitting an all-time high in November 2021, Bitcoin purchases are down 43%. And new data from Google indicates that retail investors may be losing interest as Cryptocurrency prices fall.

Google data also indicates that Internet searches for Bitcoin have fallen since May 2021, when they were at their peak.

At 91 years old, it’s fair to say that Warren Buffett has seen enough to form a strong opinion. Time will pass if he is right about the future of Bitcoin.

Win a $100 bitcoin bonus

Our updated list of the best cryptocurrency apps for 2022 is packed with the best picks in their class. The cryptocurrency apps that made it to our list include perks like $0 commissions and a selection that offers a $100 bitcoin bonus. Check the list here and start your crypto journey today.

Get the best picks