Warren Buffett wouldn't pay $25 for all the Bitcoin in the world, but he does like Activision...

midian182

Posts: 7,882   +81
Staff member
What just happened? If someone offered you all the Bitcoin in the world for $25, you'd be unlikely to turn it down, given that BTC has a market cap of around $746 billion. But Warren Buffett, better known as the third-richest man in the world and a very successful investor, wouldn't take that deal because Bitcoin isn't actually worth anything or produces anything, according to him.

Berkshire Hathaway CEO/Chairman Buffett has made his feelings toward crypto clear in the past; he once called Bitcoin "rat poison squared." At his company's annual shareholder meeting on Saturday, Buffett once again rallied against digital currencies and why he believes they are a poor investment.

"If you told me you owned all the bitcoin in the world and you offered it to me for $25, I wouldn't take it," Buffett said. "What would I do with it?"

Rather than just colorfully expressing his feelings toward Bitcoin, Buffett, on this occasion, gave a more detailed explanation as to why he seemingly hates it so much.

"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," the investor 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."

Berkshire Hathaway vice chairman and Buffett's long-time business partner, Charlie Munger, has been even more critical of Bitcoin in the past. He said holding onto crypto was "stupid" as he predicts its value will fall to zero in time, the crypto is "evil" because it undermines the integrity and stability of the US financial system, and it makes the US "look foolish" because China was sensible enough to ban it.

"In my life, I try and avoid things that are stupid, evil, and make me look bad in comparison to someone else," Munger said. "Bitcoin does all three."

It's often been said that crypto-love among billionaires is a generational thing. Fifty-year-old Elon Musk is a huge fan who constantly tweets about the likes of Dogecoin. Sixty-six-year-old Bill Gates isn't too enthusiastic; 91-year-old Buffett hates it; and 98-year-old Munger, who was born in the same year Lenin died, seems to think it's the work of the devil.

Buffett might not like crypto, but he apparently believes in the earning power of video games. Berkshire Hathaway has raised its stake in Activision Blizzard from 2% as of the end of year to 9.5%, worth around $5.6 billion.

It's an especially interesting move by Buffett, who says it was entirely his decision, seeing as the Microsoft acquisition of Activision Blizzard is in doubt due to the FTC's scrutiny of the deal. The company's shares are currently at $75, way below Microsoft's offer of $95 per share and the $82 they reached following news of the acquisition.

As reported back in February, the uncertainty around the deal stems from the US Federal Trade Commission looking into the acquisition. Buying Activision Blizzard would make Microsoft the third-largest video game company after Tencent and Sony, and that's brought the attention of regulators examining potential antitrust issues.

Buffett image credit (center): Fortune Live Media

Permalink to story.

 

QuantumPhysics

Posts: 6,308   +7,247
Price is what you pay.
Value is what you get.
Cryptocurrency has a price - but has no value whatsoever.

While I do see use-case scenarios for crypto currency, it's only amongst third world countries (developing nations) whose own currency is virtually worthless due to inflation. The modern countries already have digital currency. We have credit cards and bank cards. Treated correctly, we can transfer money and purchase just about anything without paying interest on the purchases. Cryptocurrency is a massive ponzi scheme where people are led to believe they can get rich by investing money into it - when there's nothing to invest in but a speculative asset.

I totally agree with Buffet/ Munger.

Trading volume is down 40% on crypto. There's no "disposable income" to reinflate the bubbles and the energy costs of mining are through the roof since the globalists cut off cheap Russian oil/gas. Rent is due. Student loans are due. No more welfare stimmies going to the hands of Robinhood/ Coinbase children.

I feel like the malinvestment period is coming to an end and we will be forced into sound investment once again.

"During recession - all shares return to the hands of their rightful owners" - JP Morgan.
 

ScottSoapbox

Posts: 326   +587
The wealthy don't worry about the devaluation of paper currency because their wealth is in inflation resistant assets such as stocks and property. Further, their income growth isn't tied to an annual minuscule raise.

Poor and most middle-class people don't have this luxury. Thus, the appeal Bitcoin.
 

QuantumPhysics

Posts: 6,308   +7,247
The wealthy don't worry about the devaluation of paper currency because their wealth is in inflation resistant assets such as stocks and property. Further, their income growth isn't tied to an annual minuscule raise.

Poor and most middle-class people don't have this luxury. Thus, the appeal Bitcoin.


Bitcoin is in no way inflation resistant.

Bitcoin has no value. It's "price" is dependent on what you can buy with it when it's translated into USD.

Every single possible scenario including worldwide recession, war, government money printing and global economic shutdown has happened in the past 3 years and Bitcoin can't hold up to $50,000.
 

Uncle Al

Posts: 8,752   +7,668
Say what you want but you don't get to be one of the richest people in the world by being wrong, especially when it comes to money. If these crypto currencies were everything they claimed you wouldn't see so many ads promoting them; after all, when was the last time you saw a commercial advertising the dollar?
 

emmzo

Posts: 609   +766
The wealthy don't worry about the devaluation of paper currency because their wealth is in inflation resistant assets such as stocks and property. Further, their income growth isn't tied to an annual minuscule raise.

Poor and most middle-class people don't have this luxury. Thus, the appeal Bitcoin.
I agree with the first part, but not with the conclusion. People keep telling that story, financial freedom for the middle class, but the truth is it only made rich people so much richer. In fact, very rich people propped it up to begin with, it would have never taken off otherwise, because regular people don't invest in high risk assets and as you can remember many regular people just sold it outright for dimes. Sure, some regular people got a few thousand dollars and now they think this is the future of money. But the appeal is the gold rush dreams more than any ideological thinking. If crypto were to replace FIAT, it would be proned to the same constraints, problems and maybe more, because the world economics will not change.
 
Last edited:

tellmewhy

Posts: 182   +86
And a bank or the paypal does not produce anything but has value because it provides service which helps with the exchanges. Bitcoin system provides the same kind of service and thus has value for the same reason.

The more resources there are and provide the same service the better because they produce competition which is the only phenomenon that pushes prices down and quality up.

Imagine if there was only one company that made processors or one company that made cars, that would be a monopoly and processors and cars would be extremely expensive and extremely unreliable and boring.

This was exactly the market economy in communist countries. People there only had one coffee a taste and that was it. The East Germans begged the West Germans for coffee because there was no competition.

In the 90's he did not like computers either. After 30 years of friendship with Bill and the indisputable proof that computers enhance the quality of life, he still does not like it. Maybe because they are not romantic or maybe because they did not exist when he was young. Who knows why ...
 

VitalyT

Posts: 6,223   +6,753
Warren Buffett is lying. His fund did purchase 1bln worth of Bitcoin awhile back, when it cost way more than now, it didn't work out, he wrote it off. Now he's back trashing crypto again. If it was someone else, I would believe, but he's just like Musk now, trying to manipulate the crypto market.
 

Karlos95

Posts: 262   +183
Warren Buffett is lying. His fund did purchase 1bln worth of Bitcoin awhile back, when it cost way more than now, it didn't work out, he wrote it off. Now he's back trashing crypto again. If it was someone else, I would believe, but he's just like Musk now, trying to manipulate the crypto market.

Not completely true.

I do love crypto and think it's better than any criminal bank.
I do believe his bashing is just a way to protect his stock. Considering the assets he has bought are completely reliant on monetary system 1. The fed reserve. Nothing but crooks coated in propaganda paint.

Truthfully, he invested into a bank that offers BTC services. So he didn't directly put $1b into bitcoin. Just a bank that believes in it.
 

kiwigraeme

Posts: 1,026   +768
I saw a report about BC - some UK reserchers did analylss -it said the majority of transactions were some fancy name with the word washing in it . Ie it was big BC holders churning and washing it to milk the markets roller coaster nature - That's why I always claimed the best strategy was to mimic them and milk the endless rollercoaster to the day it dies - You ever wonder why BC Billionaires don't cash out - as the can milk 20% returns all the time on the amounts they sell and rebuy - 20 Million here for a yacht - 30 million here for living expenses- People holding forever are the suckers who will lose everything
 

scavengerspc

Posts: 2,575   +2,800
TechSpot Elite
Warren Buffet is a dinosaur. Just like you don't ask an archer from the classical period about guns, you don't ask Warren Buffet about modern monetary technologies like Bitcoin.
Before you make another mistake and stand by that claim. Or worse, repeat it, you should research the $$ Buffet made a lot of people in just recent years with his advice on Home Capital Group.

I feel safe in saying he has absorbed massive amounts of information on crypto over the years.
 

emmzo

Posts: 609   +766
I saw a report about BC - some UK reserchers did analylss -it said the majority of transactions were some fancy name with the word washing in it . Ie it was big BC holders churning and washing it to milk the markets roller coaster nature - That's why I always claimed the best strategy was to mimic them and milk the endless rollercoaster to the day it dies - You ever wonder why BC Billionaires don't cash out - as the can milk 20% returns all the time on the amounts they sell and rebuy - 20 Million here for a yacht - 30 million here for living expenses- People holding forever are the suckers who will lose everything
2% of wallets, the so called whales, own 90-95% of Bitcoin. The rest of people are fighting over for crumbs. Manipulation has never been easier. They endlessly ride this carousel, sell high and rebuy low, because they can control the market. There's no oversight, because "privacy"... There's your financial freedom, your money worth on the whims of the filthy rich.
 

Theinsanegamer

Posts: 3,360   +5,586
Warren Buffett is lying. His fund did purchase 1bln worth of Bitcoin awhile back, when it cost way more than now, it didn't work out, he wrote it off. Now he's back trashing crypto again. If it was someone else, I would believe, but he's just like Musk now, trying to manipulate the crypto market.
His fund experiened firsthand the wild west tier manipulation and economic disaster that plagues the rypto market. He's been around long enough to see where crypto is heading.,
 

poltevo

Posts: 16   +7
Price is what you pay.
Value is what you get.
Cryptocurrency has a price - but has no value whatsoever.

While I do see use-case scenarios for crypto currency, it's only amongst third world countries (developing nations) whose own currency is virtually worthless due to inflation. The modern countries already have digital currency. We have credit cards and bank cards. Treated correctly, we can transfer money and purchase just about anything without paying interest on the purchases. Cryptocurrency is a massive ponzi scheme where people are led to believe they can get rich by investing money into it - when there's nothing to invest in but a speculative asset.

I totally agree with Buffet/ Munger.

Trading volume is down 40% on crypto. There's no "disposable income" to reinflate the bubbles and the energy costs of mining are through the roof since the globalists cut off cheap Russian oil/gas. Rent is due. Student loans are due. No more welfare stimmies going to the hands of Robinhood/ Coinbase children.

I feel like the malinvestment period is coming to an end and we will be forced into sound investment once again.

"During recession - all shares return to the hands of their rightful owners" - JP Morgan.

Bitcoin is an speculative asset and its value is simply what people believe its worth (and will be worth in future). It doesn't have intrinsic value. Maybe as some point - decades from now - it will mature into an inflation hedge like gold.

Its very hard to predict the price of Bitcoin. Its a global asset and there are lots of influencing factors. I'm not sure how the price of energy impacts the price of Bitcoin or how the reduction in trade volume impacts anything - I'll leave that to the traders.

Buffet has a investment thesis centred round intrinsic value. Its no surprise that he has no time for Bitcoin, but he could be completely wrong about if its a good investment or not. Bitcoin could be $100000 in 10 years, or $10000. Buffet doesn't know anymore then any other professional investor.
 

eforce

Posts: 948   +1,360
Crypto price is manipulated by exchanges and stable coin makers much in the way the Fed/banks manipulate the stock/commodities market.
 

Eflow

Posts: 46   +93
The wealthy don't worry about the devaluation of paper currency because their wealth is in inflation resistant assets such as stocks and property. Further, their income growth isn't tied to an annual minuscule raise.

Poor and most middle-class people don't have this luxury. Thus, the appeal Bitcoin.

That is utter nonsense. It's never been easier for the middle class to invest in the stock market. People can invest in mutual funds with zero transaction costs.

Bitcoin is attractive from a get-rich-quick perspective. End of story.
 

NightAntilli

Posts: 900   +1,175
Before you make another mistake and stand by that claim. Or worse, repeat it, you should research the $$ Buffet made a lot of people in just recent years with his advice on Home Capital Group.

I feel safe in saying he has absorbed massive amounts of information on crypto over the years.
Of course he can still make money in the traditional monetary system. It's what he's good at. That crypto exists doesn't somehow mean that you can't make money in the traditional way. And making money the traditional way doesn't mean that he understands crypto or knows how to navigate that world.

I'm confident that he doesn't understand it, and would never invest in it directly. But he is definitely seeing its potential, and being a conservative investor as he is, he's not gonna buy it directly. Anyone paying attention knows that he is indirectly dipping his toes in it, by buying stocks of companies that do believe in crypto, like Nubank. Here;

 

Squid Surprise

Posts: 5,335   +4,980
He's rather disingenuous in his comments... comparing tangible things to crypto is obviously a bad comparison... you compare crypto to MONEY. That's what it is... and dollars (or Euros, Francs, etc) have no more intrinsic value than Cryptocurrencies.

If you want to go back to the days of bartering...then maybe you can make his argument.