What just happened? If someone offers you all of the world’s bitcoin for $25, you’re unlikely to turn it down given BTC’s market cap is around $746 billion. But Warren Buffett, better known as the third richest man in the world and a highly successful investor, would not agree to this deal because, according to him, Bitcoin is not really worth anything and does not produce anything.
Berkshire Hathaway CEO/Chairman Buffett has been clear about cryptocurrencies in the past; he once called Bitcoin “rat poison squared”. At his company’s annual shareholder meeting on Saturday, Buffett again spoke out against digital currencies and why he sees them as a bad investment.
“If you told me that you own all the bitcoins in the world and offered them to me for $25, I would not agree,” Buffett said. “What would I do with him?”
Instead of just eloquently expressing his feelings for Bitcoin, Buffett in this case gave a more detailed explanation of why he apparently hates it so much.
“If you said… for a 1% stake in all farmland in the United States, pay our group $25 billion, I will write you a check this afternoon,” the investor said. “[For] $25 billion Now I own 1% of the farmland. [If] you offer me 1% of all the residential buildings in the country and you want another 25 billion dollars, I’ll write you a check, it’s very simple. Now if you told me you own all the bitcoins in the world and offered them to me for $25, I wouldn’t take them because what would I do with them? I would have sold it to you anyway. It won’t do anything. Apartments will produce rent and farms will produce food.”
Berkshire Hathaway vice chairman and longtime Buffett business partner Charlie Munger even more critical bitcoins in the past. He said holding on to crypto was “stupid” as he predicts its value will drop to zero over time, crypto is “evil” because it undermines the integrity and stability of the US financial system and it makes the US “look stupid” because China was sensible enough to ban it.
“In my life, I try to avoid things that are stupid, mean, and make me look bad compared to someone else,” Munger said. “Bitcoin does all three.”
It is often said that crypto love among billionaires is the thing of a generation. Fifty-year-old Elon Musk is a big fan, constantly tweeting about coins like Dogecoin. Sixty-six-year-old Bill Gates too enthusiastic; Buffett, 91, hates it; and Munger, 98, who was born the same year Lenin died, seems to think it was the work of the devil.
— Elon Musk (@elonmusk) February 4, 2021
Buffett may not like cryptocurrencies, but he obviously believes in the profitability of video games. Berkshire Hathaway increased its stake in Activision Blizzard from 2% at the end of the year to 9.5%, worth about $5.6 billion.
It’s a particularly interesting move on Buffett’s part, who says it was entirely his decision as Microsoft’s Activision Blizzard acquisition is in doubt. due to FTC check deals. The company’s shares are currently worth $75, well below Microsoft’s $95 per share offer and the $82 they reached after the acquisition news.
As informed back in February, the uncertainty surrounding the deal is due to the fact that the US Federal Trade Commission is looking into the acquisition. Buying Activision Blizzard would make Microsoft the third largest video game company after Tencent and Sony, and it has attracted the attention of regulators looking into potential antitrust issues.
Buffett image credit (center): Fortune Live Media
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