It turns out that the 88-year-old Warren Buffett is not interested in crypto assets at all. According to previous "conventions," the billionaire investor went to Berkshire Hathaway's shareholders at a conference called "Woodstock of Capitalism." They "re-expressed" his true feelings about Bitcoin and once again dissed Bitcoin.
On May 4th, Beijing time, his company's annual shareholder meeting was held in Omaha today. He couldn't help but feel sorry for the digital currency he did not understand. According to reports, Buffett said:
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" Bitcoin is a gambling device… There are already a lot of fraud related to it . Many people have lost a lot on Bitcoin. Bitcoin doesn't produce anything."
At least Buffett did not call Bitcoin "rat medicine" as it did last year. According to reports, his partner Charlie Munger once compared the crypto asset transaction to "dementia." Buffett’s shareholders came to Omaha and might just want to hear what he thought about the encryption revolution that swept the US economy.
Bitcoin is "not an investment"
Buffett did not stop here. He continues to “insult” bitcoin investors, and he also said that bitcoin is not an investment at all. Since the bitcoin price hit a new high in 2019 this week, many people's portfolios in the cryptocurrency sector have ballooned. Buffett said:
" Bitcoin can't do anything. It can only be placed there. It's like a shell, it's not an investment for me ."
According to QKL123 data, the total market value of Bitcoin has now exceeded $100 billion, and has increased by more than $10 billion in the past two weeks. If Bitcoin is a shell, take us to the beach so we can start to smash.
For Buffett's "desperation" of Bitcoin, it's important to remember that his own company's stock, Berkshire Hathaway, has outperformed the broader market so far this year. It rose by 8%, while the S&P 500 rose by double digits. The stock market is now in a historic bull market. So he may just not see the value of the cryptocurrency, maybe he does not want to see it.
So far this year, Berkshire Hathaway’s stock has underperformed the S&P 500. |Source: Yahoo Finance
Buffett sneered at ICO with a button
Then he seems to start laughing at ICO again, he said:
"I ripped off a button from my clothes. This is a small token… I will sell it to you for $1,000 now, and I will see if I can raise it to $2,000 before the end of the day. …but this button has only one use, and its use is very limited."
Well, let's analyze it. Bitcoin is a value-storing tool that rivals gold. This is a point-to-point digital currency that provides immigrants with a way to send money to their families, faster and cheaper than any non-blockchain transfer service. And it is decentralized, so it is not subject to any sudden intervention by the central bank or the government, and will not start the printing machine to cause inflation.
Whether he realizes that Buffett is spreading "Fear, Uncertainty and Questioning (FUD)" on Bitcoin and blockchain, he said:
"The blockchain…is very big, but it doesn't need bitcoin. Of course, JPMorgan Chase has launched its own cryptocurrency."
Blockchain pioneer Wences Casares once said that those who did not recognize the value of Bitcoin but believed in blockchain technology showed "ignorance of how the system works." We will use Warrens's famous words to tell Buffett:
“Without bitcoin, the blockchain doesn't exist… If you take Bitcoin, the miners will disappear and the blockchain will disappear.”