For years, business tycoon Warren Buffet condemned Bitcoin as an investment, telling people that the crypto asset was nothing more than a gambling. Two years ago, just before Berkshire Hathaway’s 2018 annual shareholder meeting, Buffett stated that Bitcoin “may be the square of rat poison.” Despite criticism from investors, the market value of the encrypted asset still exceeds Buffett’s multinational group holding company Berkshire Hathaway.
Bitcoin has many haters, including Jamie Dimon, Peter Schiff and Nuriel Roubini. In addition to these experts, Berkshire Hathaway’s American investor and chairman and CEO Warren Buffett also doesn’t like Bitcoin. For many years, this executive who was interested in business development and invested in his youth was keen to dislike Bitcoin (BTC). Two years ago, Buffett explained that buying crypto assets is not an investment.
Buffett emphasized in an interview in 2018 that when he bought bitcoin, he said: “You did not invest in doing this.” “You are guessing. There is nothing wrong. If you want to gamble, someone will be with you tomorrow and pay more Money, that’s a game. It’s not an investment.”
Then, in a discussion with CNBC’s Becky Quick, Buffett further explained that Bitcoin “may be the rat’s poison square.” In addition, on Valentine’s Day 2018, Buffett’s partner and Berkshire Hathaway’s vice chairman Charlie Munger said that he hates Bitcoin. At the company’s annual shareholder meeting, Munger stated that the encrypted asset is “toxic poison” and “disgusting.”
“I never considered for a second, and [bitcoin]”, Munger insisted. “The moment it was brought up, I hated it. The more popular it is, the more I hate it. People are fascinated by this, it is disgusting. “
Although the big names of Berkshire Hathaway hate the crypto asset Bitcoin (BTC), according to statistics, the digital currency still exceeds the net worth of the multinational holding company. The price of Bitcoin is higher than the range of $29,300 per unit, giving BTC a market valuation of $544 billion, which is $1 billion higher than Berkshire Hathaway’s capital.
The next major company that BTC needs to pass is Taiwan Semiconductor Manufacturing (TSMC), which is the largest semiconductor manufacturer in the world. Bitcoin has surpassed the valuation of Visa, the major payment network, with a valuation of approximately $482 billion.
The large conglomerate Berkshire Hathaway is basically a lot of companies, because this holding company completely owns many well-known companies, such as Dairy Queen, GEICO, Duracell, Pampered Chef, Fruit of the Loom, etc. Berkshire Hathaway also holds significant minority stakes in Coca-Cola, Bank of America, Apple and American Express.
Since Bitcoin was launched on January 3, 2009, 12 years ago, the value of the currency has grown substantially, but it is difficult for traditional investment tycoons to deal with why its value is so high. To this day, people like Peter Schiff and Warren Buffet believe that Bitcoin is nothing more than a pyramid scheme.
Buffett once said: “If you buy things like farms, apartments or businesses that are interested in,” “You can do it privately. This is a completely satisfactory investment. You can look at the investment itself and it will bring you a return. Now, if you buy something like Bitcoin or some kind of cryptocurrency, you don’t actually produce anything. You just want the next guy to pay more.”
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