Jakarta, CNBC Indonesia – Slowly but surely, bitcoin continues to be accepted as one of the important elements in the world of finance and investment. However, not for Berkshire Hathaway founder Warren Buffett.
In the company’s annual general meeting of shareholders, Saturday (30/4/2022) United States time, Buffett said that bitcoin is not a productive asset and does not produce anything tangible. Despite the shift in public perception, Buffett is still reluctant to buy it.
“Whether it goes up or down in the next year or five or 10 years, I don’t know. But one thing I’m sure of is that it (bitcoin) won’t do anything,” he said as quoted by CNBC International, Sunday (1/5/2022) .
“There is ‘magic’ in it and people have put ‘magic’ on a lot of things,” he continued.
Many bitcoin enthusiasts think of cryptocurrencies as passive assets that they buy and expect to see a rise in price in the long run. For more sophisticated crypto investors, some coins offer a way for them to use their crypto productively, either through loans, or as collateral to create additional portfolio benefits.
However, they are young, highly speculative and have not yet entered the mainstream like bitcoin.
Buffett says that an asset, to have value, must give something to someone. According to him, there is only one currency that is accepted.
“You can find all kinds of things, we can put Berskhire coins, but at the end of the day it’s money,” he said, holding up a $20 bill.
“There is no reason in the world why the US government would let Berskhire’s money replace theirs,” he continued.
Both Buffett and Berkshire Hathaway Vice Chairman Charlie Munger have made comments against bitcoin in the past. In yesterday’s AGM, Munger again satirized the cryptocurrency.
“In my life I try and avoid things that are stupid and mean and make me look bad compared to other people and bitcoin does all three,” Munger said.
“First, it’s stupid because the odds are still zero. It’s evil because it undermines the Federal Reserve’s system and third, it makes us look stupid compared to the Communist leaders in China. They are smart enough to ban bitcoin in China,” he continued.
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