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- During Berkshire Hathaway’s annual meeting, Buffett said that Bitcoin isn’t a productive asset and doesn’t produce anything tangible or meaningful.
- Binance’s CEO said no need to explain Bitcoin to people who don’t need it, rather focus on the ones who do.
It is quite certain that Bitcoin proponents might travel a decade back in time to get even one single piece of Bitcoin at $25. However, veteran investor Warren Buffett is not willing to pay this price even for all the Bitcoins combined.
Buffett’s recent Bitcoin bashing comments came during the Berkshire Hathaway Annual Shareholder Meeting last Saturday, April 30. He reiterated that Bitcoin isn’t a productive asset and doesn’t produce anything tangible or meaningful.
Related: Peter Thiel lashes out at Warren Buffet and others for negative agenda against BTC
The oracle of Omaha further compared Bitcoin to other assets and explained why he doesn’t see any value in it. He said:
If you said… for a 1% interest 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 the farmland. [If] you offer me 1% of all the apartment houses 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 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. The apartments are going to produce rent and the farms are going to produce food.
Buffett added that assets need to “deliver something to somebody” to hold value. He jokingly said that tomorrow even he can come up with Berkshire coins. However, he adds “there’s no reason in the world why the United States government… is going to let Berkshire money replace theirs”.
Reactions poured In from the crypto community
Soon after Buffett’s comments, reactions started pouring in from all across the crypto community. Crypto market proponents took several swings at the legendary investor. Many believe that Buffett’s understanding of the new asset class is very limited. Bitcoin investors and Mexican billionaire Ricardo Salinas Pliego said:
It’s sad to see him rambling on about a suubject he clearly does not understand. That’s why the future ALLWAYS belong to the young and not the OLD.
In two consecutive tweets on Sunday, Binance CEO Change Peng Zhao wrote: “They don’t need each other. Warren has enough paper money and is happy. #Bitcoin has enough supporters and growing. No need to sell/promote Bitcoin to people who have already made up their mind that they don’t want it. We don’t need 100% adoption. Currently adoption is probably less than 5%. Teach it to the others who may need it”.
Linda P. Jones, author of the 3 Steps to Quantum Wealth crypto book pointed out Buffett’s investments in companies having exposure to cryptocurrencies. “Did Warren Buffet forget he invested $500 million in Nubank, a Bitcoin-friendly bank? Did he forget his investment in SBI Holdings, which owns 10%+ of Ripple? Or Bank of America, a Ripple partner?” she wrote.
