Warren Buffett Won’t Pay $25 for All Bitcoin in the World

Warren Buffett, CEO of Berkshire Hathaway, says he won’t buy all bitcoins in the world for $25. Charlie Munger, his long-time business partner, and right-hand man in Berkshire Hathaway, believes that bitcoin is stupid and evil. He also noted that the cryptocurrency makes him look bad.

Warren Buffett Explains Why He Won’t Buy Bitcoin

During Berkshire Hathaway’s annual shareholders meeting on Saturday, Charlie Munger and Warren Buffett discussed bitcoin. Buffett is Berkshire’s CEO and chairman. Munger is often known as his right-hand guy and vice chairman of the company’s board.

The Oracle of Omaha, who is famously quoted as saying that bitcoin is “probably rats poison squared,” explained why he wouldn’t buy BTC. He stated:

It’s not clear if it will go up or down over the next year or in five years or ten years. However, I do know that it does not produce anything.

Buffett gave some examples. For a 1% stake in all farmland in America, Buffett would pay $25 Billion. He would also pay $25 Billion for a 1% stake in all apartment houses in the United States. He said, “I would write a check today.”

He explained that bitcoin buying is possible by following these steps:

If you said you owned all the bitcoins in the world, and offered it to you for $25, what would you do with it? It would have to be returned to me in some way. It won’t do anything.

He stressed that bitcoin is not the same as bitcoin: “The apartments will produce rent, and the farms will produce food.”

The Berkshire boss then discussed the U.S. Dollar. “Assets must deliver value to someone in order to be valued. There is only one currency that can be accepted. There are many things you can do – we can put up Berkshire coin… but at the end, this money is money,” he said, holding a $20 bill. “And there is no reason why the United States government… would let Berkshire money replace itss.

Buffett however invests in Nubank, a bitcoin-friendly digital bank that offers BTC investments.

Charlie Munger says Bitcoin is stupid, evil, and makes him look foolish

Munger reiterated Saturday his firm stance against bitcoin. The Berkshire vice chair shared the following:

I avoid bad and stupid things in my life. Bitcoin does both.

Munger said, “In the first instance, it’s stupid because they’re still likely to go down to zero.” It’s bad because it undermines Federal Reserve system… Third, it makes us look foolish in comparison to the Communist leader of China. He was intelligent enough to ban Bitcoin in China.

In answer to a question regarding which single investment one should make in order to protect against high inflation, the Berkshire vice chair also mentioned bitcoin. He stated:

If you are a retiree with a personal advisor and they suggest that you invest all your money in bitcoin, you can simply say no.

Munger has repeatedly attacked bitcoin. In February, Munger said the government should ban cryptocurrency. He called it a “venereal illness” and praised China for banning cryptocurrency. He said in May that bitcoin was “disgusting” and against the interests of civilization.