For Buffett, the United States has no reason to accept this cryptocurrency, or any digital money created by companies, as an alternative to the dollar, and that bitcoin produces nothing—though he does. Don’t know if it has value or not. Crypto assets will grow over a long period of one, five or 10 years.
The mega-investor said he would buy 1% of all agricultural land in the United States, or 1% of all buildings in the country, for $25 billion, because he believes these assets can generate income, products.
“Now, if you told me you owned all the bitcoin in the world and offered me it for $25, I wouldn’t take it. What would I do with it? I would have to sell it back to you one way or the other. He will do nothing. Apartments will generate income and farms will produce food,” he said Saturday at Berkshire Hathaway’s annual shareholders’ conference.
Berkshire Hathaway’s vice president Charlie Munger also took a stand against bitcoin. “In my life, I try to avoid things that are stupid and mean and I feel bad when I compare myself to someone else – and bitcoin does all three,” Munger said. “First, it’s stupid because it’s still likely to go to zero. It’s bad because it undermines the Federal Reserve System, and third, it makes us look more like fools than the Communist leader in China. He It was smart enough to ban bitcoin in China.”
In March of this year, Robert Kiyosaki, best known as the author of the personal finance book “Rich Dad Poor Dad,” was pessimistic about the future of bitcoin due to the regulation of cryptocurrencies in the United States. Kiyosaki predicted that cryptocurrencies could be confiscated – despite the fact that assets could be stored on devices that act as encrypted wallets and are disconnected from the Internet and the traditional financial system as a whole.
Another bitcoin critic is Naseem Taleb, author of the best-selling The Logic of the Black Swan, Risking Once Skin, and Antifragile. In February of this year, when the cryptocurrency’s value plummeted, Taleb said it was “a perfect game for suckers during low interest times.” “The truth is that bitcoin is not a hedge against inflation, it is not a hedge against the oil crisis, it is not a hedge against stocks and certainly bitcoin is not a hedge against geopolitical events – in fact it is quite the opposite. ” He said on his social media.
Last year, Microsoft co-founder Bill Gates pointed to a problem with bitcoin in an interview published in the American newspaper The New York Times. Gates said the way cryptocurrencies work, transactions being processed by computers and servers scattered around the world and not connected to a central bank could harm the environment. Therefore, billionaires do not see bitcoin as the currency of the future of the world economy.
A study by researchers at the University of Cambridge concluded that the cryptocurrency mining process (as it is said to generate new bitcoins and authenticate transactions) consumes more electricity per year than countries such as Argentina, the United Arab Emirates and the Netherlands. able to do.
Bitcoin enthusiasts argue that the asset may have a higher value than countries’ currencies because it has a limited supply, creating shortages and is used by governments to avoid the inflation associated with increased currency issuance. Short term as a measure to inject capital into the resource economy.