Warren Buffet Still Says He’s Against Bitcoin… As Everyone Expected

May 2, 2022 11:30 am Comments

Although it has been obvious that Bitcoin has been gaining traction around the world with countries adopting it as legal tender and being acquired by large financial institutions at record rates, Warren Buffet is still sticking to his skeptical view of the asset.

The 91 year old investor recently stated in the Berkshire Hathaway Annual Shareholder meeting that he still wouldn’t touch it because it is not a “productive asset”.

He reveals his negative comments regarding Bitcoin despite Berkshire Hathaway revealing that it has directly invested in crypto-related businesses and banks in the past couple years which creates quite a contradiction.

Charlie Munger has also publicly stated that he shares the same views.

The revelation of their comments has lead to others like Elon Musk mocking them on Twitter saying “Haha he says “Bitcoin” so many times”.

CNBC reports:

Investors for years have been puzzled over how to value bitcoin in part because of its potential to serve different functions.

In Western markets it has been established as an investment asset, particularly in the past year as rates and inflation have been on the rise. In other markets, people still see enormous potential for its use as digital cash.

“Assets, to have value, have to deliver something to somebody. And there’s only one currency that’s accepted. You can come up with all kinds of things — we can put up Berkshire coins… but in the end, this is money,” he said, holding up a $20 bill. “And there’s no reason in the world why the United States government… is going to let Berkshire money replace theirs.”

Both Buffett and Charlie Munger have made hostile comments toward bitcoin in the past. Most famously, Buffett said bitcoin is “probably rat poison squared.” Munger doubled down on that sentiment Saturday.

The comments here come after the firm had invested roughly $1 billion in the digital bank called Nubank which allows cryptocurrency in its transactions and offers products like Bitcoin ETFs.

The business is based in Brazil which is known to be a crypto friendly region and the bank itself is known to be the largest neobank in Latin America.

Some are unsure if perhaps the board of Berkshire Hathaway has different perspectives on Bitcoin than Buffet himself, but it sure seems like Buffet’s comments on Bitcoin has been overly strong for some reason.

The news of this investment was revealed when the firm made its SEC filings of its investments in the past year.

Bitcoinist.com reports:

In the most recent SEC filing of $1 billion, the investment group has revealed that it had dropped more than 3 billion of its investments from the Mastercard and Visa.

Even though the world’s famous tech tycoons, Warren Buffett, and its partner, showed a distaste for cryptocurrencies but what changed their mind, maybe the opportunity to invest in a different type of financial service provider.

Due to the pain of underserving in the traditional banking system, a rally of digital banks is up and coming, especially in Latin America. The firms like Nubank will attract a huge number of users due to traditional banking drawbacks.

The crypto community has openly disagreed with Buffet and believe that the investor is out-of-sync with the modern world.

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