It is common knowledge that Warren Buffett is not a fan of Bitcoin, although the primary cryptocurrency has found many fans and supporters. However, he has finally elaborated on why he believes Bitcoin is not something worth investing in. Let’s take a look at his reasons.
Warren Buffett and Bitcoin
Warren Buffett is an American billionaire, investor and mostly a great businessman. The bulk of his fortune has come from investments he has made through his holding company Berkshire Hathaway, in which he is the largest shareholder and CEO. He is also a well-known critic of Bitcoin. He called Bitcoin a rat poison several years ago and did not change his opinion since.
Bitcoin and productivity
Berkshire Hathaway held its annual shareholder meeting on Saturday, where Warren Buffett broke down why Bitcoin is not and will not be in his portfolio. According to him, Bitcoin does not create anything tangible and it is not a productive asset. It is true that even BTC supporters consider it more of an investment asset. After buying it, most investors hold it or HODL, that is if they do not try to catch the market. Among investors are more and more institutions, which use Bitcoin as a hedge against inflation and not as an active tool.
Warren Buffett and investment
Warren Buffett also compared Bitcoin to other value-creating investments. If you offered him 1% of all the houses in the US for $25 billion, he would take that investment in a heartbeat. However, if someone wanted to sell him all the bitcoins for $25, he wouldn’t buy them. That is a very strong expression from such a successful businessmen. According to some opinions, he is a very old man (in his 90s), who is not able to understand the new technology. Because there is not only Bitcoin.
Tip: What can also be blockchain and why call it a timechain?
There are many more cryptocurrencies now available, and some of them can be used much more actively than Bitcoin. For example PlatonCoin (PLTC), which you can use for staking, for example, or use it to buy vouchers on our Platon Store or bid in an auction for a desired and hard to reach object. Anyway, it’s up to you how you spend your money.