When it comes to crypto, opinions are notoriously divided. Some see virtual currencies as the future of money, offering unprecedented levels of freedom and security. Others view cryptocurrencies as little more than a fad or get-rich-quick scheme. One person who falls firmly into the latter camp is Warren Buffett, the influential billionaire investor.
In recent comments about Bitcoin (BTC) at the Berkshire Hathaway (BRK.A), (BRK.B) annual shareholder meeting, Buffett didn’t pull any punches, dismissing the digital currency as a poor investment while stating that even the most lucrative offer wouldn’t convince him to invest in crypto.
At first glance, his opinion might seem harsh and unwarranted. After all, Bitcoin has consistently defied naysayers over the years, with prices only going up despite numerous challenges and setbacks.
However, when you look at how Bitcoin actually works, it’s perhaps understandable, to a certain extent, why Buffett, who has previously dismissed BTC as “rat poison squared,” and depicted it as a worthless delusion, would take such a harsh stand on cryptos.
Unlike productive assets like stocks or real estate, which generate value through ongoing business activity or rental income, Bitcoin, according to the Oracle of Omaha, offers no intrinsic benefits at all. And given its highly speculative nature and wild price swings, Buffett would never consider paying $25 for every Bitcoin available – no matter how much he wanted to own it!
“Now, if you told me you own all of 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 isn’t going to do anything..” Buffett said regarding the $740 billion market cap apex crypto asset.
Marc Andreessen, an early pioneer in the development of web browsing and co-founder of VC firm Andreessen Horowitz, tweeted the clip, adding, “it’s so wild he says this stuff while nakedly shilling diabetes.”
Tesla and SpaceX CEO Elon Musk responded: “…he says Bitcoin so many times.”
Haha he says “Bitcoin” so many times
— Elon Musk (@elonmusk) May 1, 2022
Meanwhile, Buffett’s business partner Charlie Munger added even more hostile comments to Bitcoin during Berkshire’s shareholder meeting.
“In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else– and bitcoin does all three,” Munger said. “In the first place, it’s stupid because it’s still likely to go to zero. It’s evil because it undermines the Federal Reserve System…and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China.”
PayPal co-founder and venture capitalist Peter Thiel believes that such negative statements about cryptocurrency have had a significant impact on preventing mainstream adoption. At the Bitcoin 2022 Conference in Miami early last month- the billionaire investor said that Bitcoin’s lack of progress rests squarely on the shoulders of some of America’s most prominent financiers.
Thiel specifically named JPMorgan Chase CEO Jamie Dimon, Blackrock Inc’s Larry Fink, Microsoft’s founder Bill Gates and Warren Buffett, who he calls a “sociopathic grandpa”, as individuals who have been actively working to discredit Bitcoin and prevent it from reaching the much anticipated $100,000 milestone.
Thiel also added that the group’s focus on environmental, social, and governance (ESG) investing is simply the latest attack vector in their ongoing war against digital assets.
While Warren Buffett and co. may not be interested in Bitcoin, it’s clear that there is a lot of potential for the cryptocurrency. With people like Musk, Andreessen and Thiel weighing in, it’s only a matter of time before Bitcoin and other cryptocurrencies become more widely adopted and integrated into our everyday lives.
At last check, BTC prices were changing hands at around $38,900, up 2.40% on the day.
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