Why doesn’t Warren Buffet invest in Bitcoin?

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Cryptocurrencies, with Bitcoin in the lead, continue to provoke the most bitter discussions between defenders and detractors, in addition to a flood of writings, reports and analyzes which, based on a single reality, which is the one in which we live, are capable of arriving at the most opposite conclusions. Come on, you don’t have to be a lynx to realize that in both positions you can find a strong dogmatic and personal opinion component, not to mention personal interests, which tip the balance one way or the other. .

It happens, however, that only with the constant fluctuation of its price, both parties have arguments to defend their positions: defenders citing the heights it has reached, and detractors relying precisely on this, on its fluctuations and how terribly Bitcoin and company are influenced to an almost endless list of eventualities, regulations for or against commercial decisions.

The clearest example of the latter is found in the various occasions when Elon Musk changed Tesla’s policies regarding paying for their cars with Bitcoin, which many of us understood as a sign of how easy it is to reverse the trend of your price. And yes, Tesla is a big company, but more for its social influence than for its sales volume, if we compare it to the main groups in the sector. What would happen if, for example, the VAG group made a similar move?

Why doesn't Warren Buffet invest in Bitcoin?

Thus, many would think that the main reason why many investors do not “bet” on Bitcoin has to do with its instability. However, as we can read on CNBC, this is not the reason why Warren Buffet, one of the most popular investors in the world, does not trust cryptocurrencies. The reason is another, which we have also seen used many times:

Whether it will go up or down next year, or in five or ten years, I don’t know. But what I’m pretty sure of is that it doesn’t produce anything.Buffett at the annual meeting of shareholders of Berkshire Hathaway, his holding company. He expressed this lack of Bitcoin backing value, as opposed to one of his group’s more recent investments:

For a 1% stake in all the farmland in America, pay our group $25 billion, I’ll write a check this afternoon […] for $25 billion now I own 1% of the farmland… Now if you told me you own all the bitcoins in the world and offered it to me for $25 I wouldn’t take it cause what the hell what would I do with it? I should sell it to you somehow. It won’t do anything… The farms will produce food…“.

Much harsher was Charlie Munger, VP of Berkshire Hathaway, expressing his opinion on Bitcoin:

In my life, I try to avoid stupid, evil things that make me look bad compared to someone else, and Bitcoin does all three. […] First of all, it’s stupid because it’s still likely to hit zero. It’s wrong 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“.

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