Why Warren Buffet is highly skeptical of Bitcoin?

Warren Buffet has always been skeptical of the bitcoin cryptocurrency. But the billionaire investor had his most harsh words yet for the cryptocurrency over the weekend. 

Buffet made it clear that his opposition to crypto has nothing to do with whether people can make money trading bitcoin. Instead, Buffett’s opposition is purely on principle because bitcoin has no intrinsic value. 

During Berkshire Hathaway’s annual shareholder meeting in Omaha, Nebraska, Buffet said, “whether it goes up or down in the next year, or five or ten years, I don’t know. Though I am sure it doesn’t multiply, it doesn’t produce anything.” 

“It’s got a magic to it, and people have attached magics to many things,” Buffett continued.

Buffet, who is worth $124 billion, explained that if the people who attended his meeting somehow owned all the farmland in the U.S., and he was offered a 1% stake on that farmland for $25 billion, he’d write a check immediately because it is a great deal on something productive. Buffet said he’d make a similar deal for 1% of all the apartment rentals in the U.S. if that were somehow on offer. 

Then, Buffet said that if one could tell me to own the entire bitcoin in the world for $25, he wouldn’t take it because what would he be doing with it? He’d have to sell it again to its previous owner one way or another. 

He further deciphered that the apartments will produce rental and the farms are going to produce food. And if he has got all the bitcoin. In addition, Buffet doubted the existence or non-existence of Bitcoin, referring to Satoshi Nakamoto, the originator of bitcoin, who “may or may not have existed.”

In summary, Warren Buffet is highly skeptical about the growth of Bitcoin cryptocurrency and doesn’t want to pay even $25 for the entire stake in cryptocurrency. However, you can tell us your opinion about the Bitcoin cryptocurrency in the comment box below.

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