Bitcoin Like ‘Rat Poison,’ Investing in Cryptocurrency Could Have a Terrible Outcome

admin

Bitcoin has been skyrocketing recently. Since February 2024, the price of Bitcoin and many other cryptocurrencies has been surging. On March 5th, Bitcoin reached an all-time high of $69,000, surpassing the previous record of $68,990 set on November 10, 2021.

However, despite its recent success, Bitcoin has always been a subject of controversy due to its volatile price, difficulty in tracking transactions, and lack of regulatory oversight. Over the past 16 years, Bitcoin has attracted a large number of enthusiasts but has also faced significant criticism.

One of the prominent critics is legendary investor Warren Buffett. He has referred to Bitcoin as “rat poison” and continuously expressed his aversion to cryptocurrencies. Buffett has also warned that investing in digital currency could have a terrible outcome.

Buffett’s opinion on Bitcoin has remained unchanged over the years. During Berkshire Hathaway’s annual shareholder meeting in 2022, he stated, “Bitcoin may go up or down in the next 5 or 10 years, I don’t know. But one thing I’m fairly certain of is that it doesn’t produce anything.”

To emphasize his point, Buffett mentioned that he would pay $25 billion for 1% of farmland or 1% of U.S. residential real estate. However, if someone offered him all the Bitcoin in the world for $25, he would decline the offer. “I wouldn’t know what to do with them, and I wouldn’t want to have a position where I’m just selling them to somebody else,” explained the investor. “They would have no value. They don’t reproduce, and they can’t be used to produce anything. Meanwhile, farmland can be rented out, and real estate can become productive.”

Read more:  The Source of Income: Panama Canal Fees During Low Water Levels

It’s not just Buffett who holds a negative view of Bitcoin. His longtime friend and business partner, the late Charlie Munger, also expressed a “dislike” for Bitcoin. Munger once said, “In my life, I try to avoid things that are stupid, wicked, or make me look bad. Bitcoin has all three.”

While Bitcoin continues to gain popularity and attract investors, it’s crucial to consider the opinions of experts like Buffett and Munger. Their skepticism towards cryptocurrencies stems from the lack of tangible value and the potential risks associated with digital assets.

For more financial insights, visit Business Today.