Warren Buffett Is Back At It Again With His Bitcoin is Valueless Talk
Buffett is a billionaire, there is no argument against that, but he is back now talking down Bitcoin and even rich guys can be wrong about finance. Here is a recent quote that is the gist of his argument, which is what he has been saying for a while. (We will ignore his recent investments in banks with a large position in crypto, as his hypocrisy has been pointed out many times.
“If you said… for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett said. ”[For] $25 billion I now own 1% of the farmland. [If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check, it’s very simple. Now 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. The apartments are going to produce rent and the farms are going to produce food.”
I have just a few thoughts:
If someone offered him 1% of all the cash in the United States, would he write a check for it? I bet he would, even though cash does not produce anything.
How does he keep telling all the people that invest with him that he didn’t have the foresight to buy crypto and they lost out on crazy returns all because he doesn’t see the value.
Here is a quote from his partner Munger:
“In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three. In the first place, it’s stupid because it’s still likely to go to zero. It’s evil 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.”
I have still more thoughts:
So, explain how the Federal Reserve is “good” and going against it is “evil.?” I am not sure how overseeing record inflation is “good.” I’m also not on board that being a checkbook for overspending is “good.”