News
“I can say with almost certainty that they will come to a bad end”
The cryptocurrency market is a whirlwind of excitement and uncertainty, fueled by fear of missing out (FOMO) and speculation about its future trajectory. In the midst of this frenzy, one of the most expert voices in the investment field, Warren Buffetthe has consistently clarified his position on the matter: he wants nothing to do with cryptocurrency.
Speaking at Berkshire Hathaway Inc.’s annual shareholder meeting in 2018, Buffett described Bitcoin as “probably rat poison squared,” a sentiment reported by CNBC’s Becky Quick. Despite the growing acceptance of Bitcoin in the mainstream financial sector, Buffett’s position remains unchanged, underscoring his belief that Bitcoin is not a profitable investment.
The late Charlie Munger, vice chairman of Berkshire Hathaway and longtime Buffett associate, echoed this sentiment during the meeting, criticizing cryptocurrency trading as “mere dementia.”
Buffett has openly expressed his caution towards Bitcoin and the broader cryptocurrency market, predicting a bleak outcome. “As far as cryptocurrencies, in general, I can say with almost certainty that they will come to a bad end,” Buffett said.
His opinion has not changed over the years. At Berkshire Hathaway’s 2022 annual shareholder meeting, he said: “Now, 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 because what would I do with it? I’d have to sell it back to you one way or another. It won’t do anything.” Through this statement, Buffett articulates his view that, unlike other assets, cryptocurrencies cannot generate value or tangible income.
While he is not primarily known as an agricultural investor, Buffett recognizes the intrinsic value of certain asset classes outside his typical portfolio, such as farmland. His perspective is that if you invest in farmland, you own a tangible asset that directly contributes to food production, a critical sector of the economy.
Emphasizing this point, Buffett said, “If you said, for a 1% interest in all the farmland in the United States, you would pay our group $25 billion, I will write you a check this afternoon.”
More on Buffett: Warren Buffett’s 400-acre farm has proven to be one of his best-performing long-term investments, even though he admits he knows nothing about farming. That’s why more and more investors are adding farmland to their portfolio.
For those looking to follow in Buffett’s footsteps by investing in hard assets but without billions to spend, platforms like Arrived Homes offer affordable access to real estate investing. Houses arrived, backed by high-profile investors including Jeff Bezos, allows people to invest in single-family rental properties for as little as $100.
The story continues
As the cryptocurrency debate rages on, with enthusiasts and skeptics alike voicing their opinions, insights from experienced investors like Buffett provide a valuable counterpoint to the frenzy. Emphasizing the importance of investing in assets that produce real, tangible benefits, Buffett’s views offer guidance for navigating the complexities of the modern financial landscape, where the distinction between speculative excitement and substantial value has never been more critical.
Not to be missed:
“THE SECRET WEAPON OF ACTIVE INVESTORS” Power up your stock market game with the #1 trading tool. 1 “news and everything else”: Benzinga Pro – Click here to start your 14 day trial now!
Get the latest stock analysis from Benzinga?
This article Warren Buffett Says He Wouldn’t Pay $25 for All the Bitcoin in the World: Considers Cryptocurrencies ‘Rat Poison’, Warns, ‘I Can Say with Almost Certainty They Will Come to a Bad End’ originally appeared on Benzinga.com
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.