Decrypt’s Art, Fashion, and Entertainment Hub.
Warren Buffett has again criticized, making the case that it has no intrinsic value.
“Whether [Bitcoin] goes up or down in the next year, or five or ten years, I don’t know," Buffett said. "But the one thing I’m pretty sure of is that it doesn’t produce anything."
“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,” Buffett said at the Berkshire Hathaway annual shareholder meeting on Saturday.
Marc Andreessen of Andreessen Horowitz tweeted out the clip, adding, "it's so wild he says this stuff while nakedly shilling diabetes."
Tesla and SpaceX chief Elon Musk responded: "Haha he says Bitcoin so many times."
The leading cryptocurrency appears to have responded positively amid the news and is trading at about $38,900 on Monday morning, up 2.3% over the past 24 hours, per CoinMarketCap.
Bitcoin and Berkshire
Founded in 1839, Berkshire Hathaway is an American multinational conglomerate holding company with over $330 billion in assets under management.
The firm’s top holdings include Apple, Bank of America, American Express, and Coca-Cola. Last year, Berkshire also purchased about $1 billion worth of Activision Blizzard stock and recently increased its position in the video game giant to about 9.5% of its shares.
It’s so wild he says this stuff while nakedly shilling diabetes. pic.twitter.com/k4cy20PVpd
— Marc Andreessen (@pmarca) May 1, 2022
For Buffett, assets have to have value, which means they “have to deliver something to somebody.
“The apartments are going to produce rent, and the farms are going to produce food […], And there’s only one currency that’s accepted,” said the Berkshire Hathaway chief.
Buffett stressed that people might create all kinds of things, even a hypothetical “Berkshire coin,” but in the end, “that’s what money is,” he said, displaying a $20 bill.
Meanwhile, Buffett’s business partner Charlie Munger added more harsh words for Bitcoin on Saturday.
“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,” Munger said.
Explaining his stance, Munger said Bitcoin “is stupid because it’s still likely to go to zero” and is “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,” concluded Munger.