Most people who have put money into Bitcoin have done so for making quick money, experts say
While Bitcoin is gradually breaking into the traditional financial systems and winning the skeptics, not everyone is a fan of the world’s largest cryptocurrency by market capitalization. Veteran investor Warren Buffett, a long-time crypto-sceptic, has reasserted his stance recently. Mr Buffett said he would not buy all of the world’s Bitcoin for even $25 – because, he added, “What would I do with it?” Hinting at his distrust of Bitcoin, he said there’s a certain magic to Bitcoin and people attach magic to a lot of things
The billionaire then explained that even if he bought Bitcoins he would have to sell them back to a willing investor to recover his investment.
“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,” Mr Buffett, 91, told CNBC.
He said if somebody were to offer him a 1 percent interest to buy all the farmland in the US for $25 billion he would immediately say yes. “[For] $25 billion, I now own 1 percent of the farmland,” he added. If someone were to offer him 1 percent of all the apartment houses in the US for that money he would, again, immediately agree. “The apartments are going to produce rent and the farms are going to produce food,” he said, clearly making a distinction that he believed Bitcoin lacks intrinsic value.
Mr Buffett said Bitcoin has “got magic to it” and people attach magic to a lot of things. He said he is not sure whether Bitcoin will go up or down in the coming years. “But the one thing I’m pretty sure of is that it doesn’t produce anything.”
Valuing Bitcoin has puzzled investors for a long time. Most people who have put money into Bitcoin have done so for making quick money, experts say. Most central banks appear sceptical about cryptocurrency and are taking a cautious approach. They say they would rather launch their own cryptocurrency, backed by foreign guarantees, than trust some private digital coins.