Warren Buffet’s scathing remarks against Bitcoin prompts its plunge over the weekend

Warren Buffett’s scorn for Bitcoin (BTC) was laid bare during the 2022 Berkshire Hathaway Annual Meeting. Buffett, a long-time critic of the premier digital currency, underlined that the digital currency has no intrinsic value and that, regardless of public acceptance, he would not purchase the cryptocurrency.

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

Buffett compared Bitcoin investments to farming and real estate, further solidifying his stance against the digital currency.

The billionaire stated that he could write a $25 billion(R 396bn) check for 1% of US farmland or 1% of the real estate business since he believes they will produce value in the long term. He stated that he cannot invest $25( R 396) in BTC since he would have to sell it speculatively to recoup his investment.

Warren Buffet’s remarks were echoed by Charlie Munger, his long-term friend and co-executive with whom he also shares a disdain for the new asset class. Munger declared Bitcoin to be evil based on three fundamental arguments. In his own words;

“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 said. “In the first place, it’s stupid because it’s still likely to go to zero. It’s evil because it undermines the Federal Reserve System… and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China.”

The gloomy statements sent a major ripple through the larger digital currency ecosystem all week, with the global market cap falling by more than 1.52 percent at one point to reach $1.7 trillion( R 26.9TN). Bitcoin led the losses, reaching a low of $37,585.79( R 593K), the lowest level recorded in the previous week.

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