Seeking Alpha “Wall Street Breakfast” “Financials” “No to crypto” Saturday May 7th 2022
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Summary by 2244
Buffett and Thiel (Image from REDDIT.COM )
Name calling amongst the big wigs has set in as Peter Thiel “called Warren Buffett the ‘enemy No. 1’ of Bitcoin” and now Warren Buffett comments during Berkshire Hathaway’s Annual Meeting agreeing that nobody wants to be talked down but there’s a rationale why Buffett called Bitcoin as “probably rat poison squared.”
Buffett highlights that he suggests investing in real “productive” assets that like farmland-it produces crops, apartment houses-generate revenue but that Bitcoin and other cryptocurrencies are non-productive assets whose value depends only on “the next guy paying you more than the last guy got.” Further he adds that “anyone who thinks the United States government is going to change the way they let [any cryptocurrency] replace the [dollar] is out of their minds.” Crypto “doesn’t multiply, it doesn’t produce anything.”
Charlie Munger commented as well. “In my life, I try and avoid things that are stupid, and evil, and make me look bad in comparison to somebody else-and Bitcoin does all three.” Munger says Bitcoin is likely to “go to zero,”that “its evil because it undermines the Federal Reserve system that we desperately need to maintain its integrity and government control,” and that “it makes us look foolish…[compared to China]...[because Xi Jinping]...was smart enough to ban Bitcoin in China.”