Bitcoin’s Moment
Bitcoin’s climb past the $100,000 mark is a watershed moment in the evolution of crypto-currencies, symbolising their growing acceptance as a legitimate asset class.
As Bitcoin hovers in the range of $38,000-$40,000 per digital coin, billionaire Warren Buffett has said that he will not even pay $25 for all the Bitcoin in the world.
Addressing Berkshire Hathaway’s annual shareholder meeting, the ace investor said Bitcoin is not a productive asset and doesn’t produce anything tangible, reports CNBC.
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“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,” he was quoted as saying in the report.
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“Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett added.
“It’s got a magic to it and people have attached magic to lots of things,” said Buffett, whose Berkshire Hathaway is back in the market as his conglomerate made roughly $41 billion of net purchases in the first quarter (Q1) this year.
The purchases in the first quarter helped chip away at Berkshire’s cash pile, which ended the quarter at $106 billion, the lowest since the third quarter of 2018.
“If you said for a 1 per cent interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a cheque this afternoon,” Buffett said.
“If you offer me 1 per cent of all the apartment houses in the country and you want another $25 billion, I’ll write you a cheque. The apartments are going to produce rent and the farms are going to produce food,” said the billionaire, adding that Bitcoin will not produce anything.
Bitcoin finished the month of April down by 17 per cent, making it the worst monthly performance this year.
The global crypto market cap is $1.74 trillion and Bitcoin dominates it with a 42.15 per cent share, as per data from CoinMarketCap.
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