Berkshire Hathaway CEO Warren Buffett says he won’t buy all the bitcoin in the world for $25. Meanwhile, his longtime business partner and right-hand man, Charlie Munger, says bitcoin is stupid and evil, noting that the cryptocurrency makes him look bad.
Warren Buffett Explains Why He Won’t Buy Bitcoin
Warren Buffett and Charlie Munger spoke about bitcoin at Berkshire Hathaway’s annual shareholder meeting on Saturday. Buffett is the CEO and Chairman of the Board of Berkshire. Munger, often known as his right-hand man, is the vice chairman of the company’s board of directors.
The Oracle of Omaha, famous for saying bitcoin is “probably rat poison squared,” explained in some detail why he would not buy BTC. He said:
Whether it will increase or decrease next year, or in five or ten years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything… There is magic and people have attached magic to a lot of things.
Buffett gave some examples. He would pay $25 billion for a 1% interest in all the farmland in the United States. He would also pay $25 billion for a 1% interest in all the apartment houses in the country. “I would write you a check this afternoon,” he affirmed.
However, when it comes to buying bitcoin, he detailed:
Now if you told me you have all the bitcoin in the world and offered it to me for $25, I wouldn’t take it because what would I do with it? I should sell it to you one way or another. It won’t do anything.
Unlike bitcoin, “The apartments are going to produce rent and the farms are going to produce food,” he stressed.
The Berkshire boss then discussed the US dollar. “Assets, to have value, must deliver something to someone. And there is only one currency that is accepted. You can make up all sorts of things – we can put in Berkshire coins … but in the end it’s money,” he added, holding up a $20 bill. “And there’s no reason in the world for the United States government… to let Berkshire’s money replace its own.”
Buffett, however, invests in bitcoin-friendly digital bank Nubank, which offers BTC investments.
Charlie Munger Says Bitcoin Is Stupid, Evil, and Makes Him Look Foolish
Munger also reiterated his harsh stance on bitcoin Saturday. The Berkshire vice chairman shared:
In my life, I try to avoid things that are stupid and evil and make me look bad compared to someone else – and bitcoin does all three.
“In the first place, it’s stupid because it’s still likely to go to zero,” Munger continued. “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.”
The Berkshire VP also mentioned bitcoin in response to a question about which unique investment one should put money into to hedge against high inflation. He said:
When you have your own retirement account, and your friendly adviser suggests you put all the money into bitcoin, just say ‘no.’
Munger has repeatedly criticized bitcoin. In February, he said the government should ban cryptocurrency, calling it a “venereal disease”. He has praised China several times in the past for banning cryptocurrency, saying he wishes crypto had never been invented. In May last year, he said bitcoin was “disgusting and against the interests of civilization”.