Warren Buffett claims he wouldn't buy ‘all the Bitcoin in the world’ for $25

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Billionaire Warren Buffett is known entirely for funnelling money into investments in the hopes of making more money. With the rise of cryptocurrencies like Bitcoin and Ethereum, many thought that the business mogul would have some stake in the virtual market. However, not only does Buffett have no stake in crypto, but he also wants nothing to do with it.

What did Warren Buffett say about Bitcoin?

Speaking at the annual Berkshire Hathaway shareholders meeting, Buffett explained that he would never invest in Bitcoin. The infamous investor told the crowd that he does not see any use in cryptocurrencies in comparison to other forms of assets.

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At the meeting, Buffett explained that Bitcoin is not a “productive asset” like farmland or property. He said that if everyone in the room owned all of America’s farmlands or houses and they offered 1% for $25 billion, he would buy it immediately. However, he wouldn't do the same for cryptocurrencies.

Buffett explained:

“If you … owned 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? I’ll have to sell it back to you one way or another. It isn’t going to do anything. Now, apartments are going to produce rent and farms are going to produce food. If I’ve got all the bitcoin, I’m back wherever [Bitcoin’s creator] was.”

Despite the negative outlook on Bitcoin’s uselessness, WarrenBuffettt did discuss one positive about the virtual currency. While it may not be useful to him, cryptocurrency has an allure to investors that many assets don't have.

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The Magic of Bitcoin

Warren Buffett told attendees that Bitcoin’s prominence over the past few years can be attributed to a “magic” feeling that it gives investors. Despite the fact that nothing is actively produced by Bitcoin, its mysticism does bring in customers.

“Whether it goes up or down in the next year or five years or 10 years, I don’t know,” Buffett said. “But one thing I’m sure of is that it doesn’t multiply, it doesn’t produce anything. [But] it’s got a magic to it, and people have attached magic to lots of things.”

Bitcoin’s mysticism has done it well. Since its creation, the cryptocurrency has soared to heights of $60,000 per coin, considerably higher than its current valuation. But will the token ever reach those heights again?