Posted by Xoken.org – The cryptocurrency market is a whirlwind of excitement and uncertainty, fueled by fear of missing out (FOMO) and speculation about its future trajectory. One of the most experienced figures in investing, Warren Buffett, stated that he does not want to buy Bitcoin or other cryptocurrencies even if they are cheap.
Buffett’s views on crypto assets have not changed from then to now. At Berkshire Hathaway Inc’s annual shareholder meeting in 2018, Buffett described Bitcoin as “rat poison squared” aka highly toxic. This is a sentiment reported by Becky Quick of CNBC.
Despite Bitcoin’s growing acceptance in the traditional financial sector, Buffett’s stance remains unchanged, emphasizing his belief that Bitcoin is not a viable investment. According to Benzinga.com, the late Charlie Munger, who was vice chairman of Berkshire Hathaway and a long-time collaborator of Buffett, echoed this sentiment during the meeting and criticized cryptocurrency trading.
Buffett has been vocal in his caution about Bitcoin and the broader cryptocurrency market, predicting dismal outcomes. “When it comes to cryptocurrencies, in general, I can say with almost certainty that they will end badly,” said Buffett, as quoted by Benzinga.com.
His opinion has not changed over the years. At Berkshire Hathaway’s annual shareholder meeting in 2022, Buffett reiterated his views. “Now if you had all the Bitcoin in the world and you offered it to me for US$25, I wouldn’t accept it because what would I do with it? I’d have to sell it back to you some way. It wouldn’t make anything ,” said Buffett.
Through this statement, Buffett articulated his viewpoint that unlike other assets, cryptocurrencies cannot generate real value or income.
The agricultural sector is one of Buffett’s valuable portfolios
While not known as an agricultural investor, Buffett recognizes the intrinsic value of certain asset classes outside his typical portfolio, such as farmland. He assessed that investment in agricultural land has tangible assets that contribute directly to food production, an important sector in the economy.
“If you said, for a 1% stake in all the farmland in the United States, pay our group $25 billion, I would write you a check this afternoon,” he said.
Buffett owns a 400-acre ranch that has proven to be one of his best-performing long-term investments. Although, he admitted that he didn’t know anything about agriculture.
For those who want to follow in Buffett’s footsteps by investing in tangible assets but don’t have billions to spare, platforms like Arrived Homes offer an easily accessible entry point into real estate investing. Arrived Homes, which is backed by well-known investors such as Amazon boss Jeff Bezos, allows individuals to invest in single-family rental properties with prices starting from US$100 (Rp. 1.56 million).
The views of experienced investors like Buffett provide a different perspective amidst the debate over cryptocurrencies. By emphasizing the importance of investing in assets that produce real returns, Buffett offers guidance for navigating the complexities of the modern financial landscape, where the difference between speculative euphoria and substantive value has never been more crucial.
Bitcoin prices have risen more than 50% in the two months after stock exchange regulators in the United States gave approval for exchange-traded Bitcoin-based mutual funds (spot Bitcoin ETFs) on January 11.
Bitcoin reached an all-time high of US$69,202 or Rp. 1.08 billion, on Tuesday (5/2). Bitcoin then corrected to the level of US$65,000 or Rp. 1.01 billion but managed to rebound again. In trading Friday (8/3) morning, CoinMetrics data showed that the price of Bitcoin rose 0.13% to US$67,284 or Rp. 1.05 billion.