Berkshire Hathaway CEO Warren Buffett says he won’t buy all the bitcoin in the world for $25. Charlie Munger his business partner, and long-time right-hand man in Berkshire Hathaway, claims that Bitcoin is dumb and evil. Munger also noted that the cryptocurrency makes Charlie look bad.
Warren Buffett Explains Why He Won’t Buy Bitcoin
Warren Buffett and Charlie Munger talked about bitcoin during Berkshire Hathaway’s annual shareholders meeting Saturday. Buffett is Berkshire’s CEO and chairman of the board. Munger, often known as his right-hand man, is the company’s vice chairman of the board.
The Oracle of Omaha, famous for saying bitcoin is “probably rat poison squared,” explained in some detail why he would not buy BTC. He explained:
Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything … It’s got a magic to it and people have attached magics to lots of things.
Buffett gave some examples. A 1% share in all American farmland would cost him $25 billion. A 1% ownership interest in all of the apartments in the country would cost him $25 billion. “I would write you a check this afternoon,” he affirmed.
He explained that bitcoin buying is possible by following these steps:
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.
Unlike bitcoin, “The apartments are going to produce rent and the farms are going to produce food,” he stressed.
After a brief discussion about the U.S. Dollar, the Berkshire chief continued to speak. “Assets, to have value, have to deliver something to somebody. And there’s only one currency that’s accepted. You can come up with all kinds of things — we can put up Berkshire coins … but in the end, this is money,” he added, holding up a $20 bill. “And there’s no reason in the world why the United States government … is going to let Berkshire money replace theirs.”
Buffett however invests in Nubank, a bitcoin-friendly digital bank that offers BTC investment opportunities.
Charlie Munger says Bitcoin is stupid, evil, and makes him look foolish
Munger continued his harsh position on Bitcoin Saturday. This was the statement that Munger, Berkshire vice chair, shared with us:
In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else — and bitcoin does all three.
“In the first place, it’s stupid because it’s still likely to go to zero,” Munger continued. “It’s evil because it undermines the Federal Reserve system … and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China.”
In answer to the question of which investment one should make in order to protect against inflation, Berkshire Vice Chairman also spoke about bitcoin. He stated:
When you have your own retirement account, and your friendly adviser suggests you put all the money into bitcoin, just say ‘no.’
Munger repeatedly attacked bitcoin. In February, he said that the government should ban the cryptocurrency, calling it a “venereal disease.” He has praised China several times in the past for banning cryptocurrency, stating that he wished crypto has never been invented. In May last year, he said that bitcoin was “disgusting and contrary to the interest of civilization.”
Let us know your thoughts on the comments made by Charlie Munger and Warren Buffett. Please leave your comments below.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis information is intended for general purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com doesn’t offer investment, tax or legal advice. The author and the company are not responsible for any loss or damage caused or alleged caused by the content or use of any goods, services, or information mentioned in the article.