Warren Buffett revealed his opinion about why we mustn't have faith in Bitcoin
The era of cryptocurrency is rapidly evolving around the financial market. First, it started with stone coins, and now it is the era of cryptocurrency. Right now, Bitcoin and Ethereum are buzzing in the digital currency realm.
But a person who has traded money and assets all of his life and made a fortune, the CEO of Berkshire Hathaway, Warren Buffett, is not pleased with how the world treats this digital currency.
There was a meeting in Berkshire Hathaway about whether they should buy Bitcoin or not, where the CEO shot down all of the shareholders by rejecting the purchase of it.
His words about this cryptocurrency were recorded during an interview: "What would I do with it? I don't know whether it goes up or down next year or five or ten years, I don't know. But the one thing I'm pretty sure of is that it doesn't produce anything. It's got a magic to it, and people have attached magic to lots of things."
The world currently appreciates cryptocurrencies like Bitcoin a lot. Even some of the names we see every day in the Forbes' list of the richest man in the world, like Elon Musk himself. Elon Musk holds a large share of Bitcoin in his pocket, and he is capable of manipulating its price of it. But there are some other names on the list that agree with Warren Buffett, just like Bill Gates did.
Bitcoin is nothing but a digital currency used for digital transactions. According to Warren: "There is no reason that the United States government would let any currency replace the dollar."
For him, this is nothing like a currency; you cannot see it, you cannot trust it. Yes, it could be more secure to store online, but the risk of getting stolen is also reasonably possible. Thus, Warren doesn't trust cryptocurrencies at all.
He stated in an interview that: "Assets, to have value, have to deliver something to somebody. And there is only one currency that is accepted. You can come up with all kinds of things- we can put up Berkshire coins, but in the end, this is money."
Warren implied that everyone could come up with an idea of creating a new form of currency, but no money in the world can replace the ones the government has approved. In terms of the United States, it's the dollar they can't replace. He also said he doesn't understand how it works and what people will produce from it.
Let's see Warren Buffett's point of view of how he sees Bitcoin as incapable of producing anything and why you can't use it: "If you said for a 1% of interest in all the farmland in the United States, pay our group 25 billion USD, I'd write you a check this afternoon. Twenty-five billion, I now own 1% of the farmland.
You offer me 1% of all the apartment houses in the country, and you want another 25 billion USD. I'll write you a check, and it's that simple. If you told me you own all of the Bitcoin in the world and offered it to me for 25 dollars, 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. The apartments will produce rent, and the farms will produce food."
A nasty, still vivid description of Bitcoin, according to Warren Buffett. Now, many cryptocurrency enthusiasts will disagree with him at some point, stating how these will replace cash shortly. Or maybe that wouldn't be the case.
Recently, a cryptocurrency enthusiast Elon Musk who owns a significant share of it, tweeted that his car-producing company Tesla won't be taking Bitcoin as a medium to purchase the cars. Not only him but other entrepreneurs and owners of multinational companies like Charlie Munger also don't have faith in it. Why are they buying it if they don't believe in this digital currency? We know that Berkshire Hathaway will not purchase the digital currency for now.