Bitcoin is battling to break out of a 7-week slide, lingering around the $30,000 mark this week. The world’s top cryptocurrency has dropped more than half of its value from its November 2021 highs, erasing its 2022 gains.
Warren Buffett reflected on this during Berkshire Hathaway’s (NYSE:BRKa) recent annual shareholder meeting on May 1:
“If the people in this room own all the farmland in America and you offer me a 1% stake and say, ‘pay us a bargain price of $25 billion,’ I’m giving you a check this afternoon.”
“If you tell me you own 1% of the apartment buildings in the United States, and you offer me a 1% stake for another $25 billion, for example, I’ll write you another check. It’s very simple.
“Now if you tell me you have all the bitcoins in the world and offer them to me for only $25, I won’t take them. What would I do with it?”.
This is a comment that Buffett has made against gold on several occasions. According to the well-known investor, yellow metal has no value and is a lousy investment since it provides no return, profitability, or interest.
Bitcoin Magazine reports that “Any item, service, or object that has value in a free market must offer value to someone. And, like other currencies, bitcoin can only make money for its owner if it is rented or sold to someone else at a later (higher) price. Freehold apartments can only return their investment cost by selling them to another buyer at a higher future price.”
“In Buffett’s case, he leases them, but at a high enough price to cover expenditures and repairs: a stream of money, economically speaking, comparable to a high enough selling price spread over time,” Bitcoin Magazine continues.