Warren Buffett explains why he is not interested in buying Bitcoin

Anaz Ima
Anaz Ima June 10, 2022
Updated 2023/10/04 at 2:40 PM

Despite the fact that Bitcoin has been gaining ground and acceptance among investors in recent years, the investor and billionaire Warren Buffett continues to express his rejection and affirms that he is not interested in buying the cryptocurrency .

And it is that during the annual meeting of shareholders of Berkshire Hathaway, held in the city of Omaha, in Nebraska, the American investor reiterated his refusal to carry out operations with Bitcoin.

The CEO of Berkshire Hathaway specified that Bitcoin is not a productive asset , that it does not generate anything tangible, therefore he said emphatically that he would not buy the cryptocurrency.

Bitcoin produces nothing, says Buffett

“Whether it goes up or down in the next year, or in five or 10 years, I don’t know. But what I’m pretty sure of is that it doesn’t produce anything,” Warren Buffett said , according to what was published by the CNBC site.

He indicated that cryptocurrencies have their magic, which makes it even more attractive in the eyes of some investors, but not for him.

“It has a magic and people have added magic to a lot of things ,” said Buffett, who is one of the world’s leading investors.

During the meeting, the CEO of Berkshire Hathaway insisted that he would not buy Bitcoin and explained why.

He assured that he would be willing to pay $ 25,000 million dollars for the 1% share of all farmland in the United States.

I wouldn’t pay $25 for all the Bitcoin in the world

And you could pay the same amount for every apartment in the country, but if you were offered all the Bitcoin in the world for $25, you wouldn’t buy it.

“If you told me you had all the Bitcoins in the world and offered them to me for $25, I wouldn’t take them because what would I do with them? I’d have to sell them to you one way or another. It’s not going to do anything. The apartments are going to produce income and the farms are going to produce food”, specified the veteran American investor.

He assures that “Bitcoin does not produce anything”, so there is no reason to buy the cryptocurrency, since it would be a waste of money.

He indicated that Bitcoin holders depend on third parties who are willing to pay more for the cryptocurrency.

Does not produce tangible goods

Warren Buffett’s main argument for rejecting Bitcoin is because he considers that it is not an asset that produces tangible goods or that can give concrete returns.

“For an asset to have a value, it must produce something and, furthermore, we already have a legal currency, so, in the end, there is no reason for the United States government to replace its money ,” said the investor while holding a dollar bill.

On some occasions, Buffett has described Bitcoin as “square rat poison”, in addition to ensuring that the cryptocurrency is a “worthless hoax”.

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