When Bitcoin went from being worthless to a "high" of more than 100 US dollars, Buffett said: Bitcoin is rat poison.
Later, the reporter asked him that Bitcoin has risen from more than 100 US dollars to more than 9,000 US dollars. What do you think of this?
Buffett replied: "Probably rat poison squared."
At the Berkshire Buffett shareholder meeting, the stock god once again expressed his unfavorable attitude towards Bitcoin: "The final result of cryptocurrencies will be very bad because they have not generated any value related to this asset." Cryptocurrency The value of an asset depends on more people entering the market, and then the holder sells it to the receiver at a higher price than the purchase price.
In an interview with Yahoo Finance, Buffett even pointed out that buying cryptocurrency is not investment but speculation.
"There's nothing wrong with that. If you want to take a gamble, someone will come tomorrow and be willing to pay more."
"That's gambling. It's not investing."
“We would never buy cryptocurrencies, even stuff I think I know a little bit about gives me enough trouble, why would I buy something I don’t understand?”
Buffett: Stay away from Bitcoin
Back in 2014, Buffett warned in an interview with CNBC: “Stay away from Bitcoin. It’s basically just a phantom, a way to move money.
This is a very efficient way to transfer funds, and you can do so completely anonymously. Checks are also a way to move funds. But are checks worth a lot of money simply for their ability to move money?
Can a money order be worth a lot of money? People can also transfer funds via money order. I want Bitcoin to be a better way to move money, but you can replicate that in a whole bunch of different ways.
The idea that Bitcoin has huge intrinsic value is a joke to me. "
Before Bitcoin came out, Buffett's attitude towards gold was never to invest. He believed that gold had two important flaws.
First of all, as a non-productive asset, gold has no "production capacity". This means that gold itself cannot change into more gold, nor can it change into any other value. Therefore, Buffett's usual investment method is to acquire oil fields, which can produce oil, acquire factories, which can manufacture products, and invest in stocks, which can generate dividends. "But if you buy an ounce of gold, hundreds of years later, it's still an ounce of gold."
He believes gold's second major flaw is its lack of practical uses. Although gold can be processed into jewelry and other industrial products, these are not enough to support widespread demand. And even for equally unproductive assets like copper and steel, as long as they have a wide range of uses, you can at least count on demand to drive up prices.
The reason why Buffett does not invest in Bitcoin today is probably similar to the reason why he does not invest in gold.
In his opinion
First of all: Bitcoin is a non-productive asset, not an asset that can generate value.
At the same time, Bitcoin has not yet supported widespread use and demand, so it is a "real bubble."
Now that the price of Bitcoin has reached 6-70,000 US dollars, do you think Buffett regrets saying these words? Welcome to discuss in the comment area.
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