Longtime bitcoin critic and billionaire business tycoon Warren Buffett has once again voiced his cynical stance on the world’s largest crypto asset. Speaking at Berkshire Hathaway’s annual meeting on April 30, Buffett explained that it’s not a productive asset and doesn’t generate anything tangible.
Although Buffett has been accepted by the traditional finance and investment community in recent years, he refuses to say so.
“Whether it’s going up or down next year, or in five or ten years, I don’t know. But I’m pretty sure it won’t do anything. There is something magical about it and people have associated many things with magic.”
The Berkshire Hathaway CEO and chairman who infamously called Bitcoin “probably rat poison squared” in 2018 described the asset as “mirage,” “not currency,” and “tulips,” among other things.
His former business partner, Berkshire Vice Chairman Charlie Munger, also called the asset “shit” and said trading cryptocurrencies was “just dementia.”
“Bitcoin has no value”
The business tycoon ranted about why he sees no value in Bitcoin compared to other things, saying:
“If you told me you owned 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 back to you one way or another. It won’t do anything. The apartments will produce rent and the farms will produce food.”
His partner Munger also reiterated that Bitcoin makes him look “stupid, evil and bad” and praised China for the ban.
“First, it’s stupid because it’s probably still going to zero. It’s evil because it undermines the Federal Reserve System and, third, makes us look stupid compared to the communist leader in China. He was smart enough to ban bitcoin in China.”
Interestingly, Berkshire Hathaway’s latest SEC filings show that the company has made a big bet on the crypto space. Recently, Berkshire Hathaway acquired a $1 billion stake in Brazil-based digital neobank NuBank, the largest provider of digital financial services in Latin America.
At the same time, the investment firm has also reduced its holdings in traditional financial firms like Visa and Mastercard.
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