Warren Buffet Would Choose $25 Over Every Last Bitcoin

Despite his company’s curious investment decision in February, Warren Buffett remains an absolute disbeliever in Bitcoin. On Saturday, the billionaire investor made clear that he wouldn’t even sacrifice $25 to have all of the Bitcoin in the world.

Bitcoin Still Worthless, Says Buffett

Warren Buffett made his comments during the Berkshire Hathaway annual shareholder meeting in Omaha, Nebraska. Berkshire shocked crypto investors earlier this year when it put $1 billion into Nubank – a crypto-friendly Brazillian banking organization.

This led some to believe that Buffett may have been having second thoughts on the asset. However, his rhetoric at the shareholder meeting remained unchanged: Bitcoin “doesn’t produce anything”, and is therefore worthless.

“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?” he asked. “I’d have to sell it back to you one way or another. Maybe it’d be the same people, but it isn’t going to do anything.”

Lessons From the Oracle: Warren Buffett's Shareholder Letter, Annotated - Bloomberg
Warren Buffett. Source: Bloomberg

Buffet’s longtime argument against crypto is that it lacks “intrinsic value”. In his view, people don’t buy crypto to accomplish anything, but simply resell it at a higher price. Therefore, assets like Bitcoin don’t derive their value from anything but speculation.

By contrast, he would gladly pay as high as $25 billion for all of all of the world’s farmland or apartment rentals. As he argues, these properties can be put to work to do something productive.

Buffett acknowledged that some items can have value even though they do nothing – like an old painting. However, he claimed that assets must deliver something to somebody to have value, unless it is a currency.

“In the end, this is money,” he said, holding up a $20 dollar bill. “But this is the only thing that’s money”.

Though the US remains uninterested, there are now two other countries to have adopted Bitcoin as their official currency.

The ‘Value’ of Bitcoin

The investor noted that much of Bitcoin’s value is derived from the “magic” that surrounds it. Much of that magic, he argues, comes from the mystery of Satoshi, which he thinks made Bitcoin the biggest cryptocurrency.

In a way, this is a statement Bitcoiners would likely agree with. Jack Dorsey has come to appreciate Bitcoin above all other cryptos for the “precious and rare” circumstance that created it. MicroStrategy CEO Michael Saylor also considers Satoshi’s anonymity to be a positive for the asset.

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Saylor, in total contrast to Buffett, has claimed many times that Bitcoin’s market cap could reach up to $100 trillion some day. For him, Bitcoin is “digital property”  – a reliably scarce asset with all of the benefits of digitization. It need not even be the world reserve currency to be valuable, as he believes that will remain the US dollar.

“I would buy all of your Bitcoin for $25,” he tweeted this morning.

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