Following Peter Thiel’s remarks, billionaire Warren Buffett details his stance on crypto

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Held on Saturday, April 30, Berkshire Hathaway’s Annual Meeting of Shareholders proved to be an educational event for all in attendance. Discussions focused on the general state of the financial sector, but arguably among the most important talking points were the realities being raised around cryptocurrencies and fintech more broadly.

This is a weighty dilemma for some, as the volatility and scams inherent in the space prove to be a factor in decreasing the overall acceptance of digital assets. A major deterioration took place a few months prior, when some of the biggest crypto players experienced a 10% decline, an overall market decline of 205 billion dollars in just 24 hours.

So, for Berkshire Hathaway boss Warren Buffett, bitcoin and all the other assorted digital assets aren’t exactly the most ideal form of asset to start with. His stance has been criticized by the likes of tech evangelist Peter Thiel, and even Tesla CEO Elon Musk, the latter replied to a clip of the power investor on Sunday saying, “Haha, he says ‘bitcoin’ so many times.”

Despite the outcry, attention, and various whims, Buffett remained far removed from the cryptocurrency realm, citing that “assets, to have value, have to deliver something to someone.” He adds: “And there is only one currency that is accepted.” For the billionaire investor, the crypto world is anything but a fad. It’s not necessarily alone either, as some of the biggest names in the sphere view digital coins as a longer-term investment, requiring tons of hope that said investment will make a lucky leap over time.

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Buffett himself relays, “no one” is a short-term bitcoin holder, as the majority are long-term investors. Sure, there are a ton of varied alternative coins available, some of which have offered immense prices in a short time, but more than most of these types of assets require incredible knowledge of the space and a person close to the parts themselves. .

“Will it go up or down next year, or in five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it’s not producing anything. is magic and people have attached magic to a lot of things,” says Buffett.

The proof of his beliefs is shown in the $600 million opt-in for more Apple stock realized on the downside, awarding the investor a fairly substantial newly valued stake in the tech company worth around $159.1 billion, or nearly 40% of Buffett’s portfolio. Clearly, Buffett still understands the major value of technology, but still struggles to see crypto as a major factor in the space.

Buffett elaborates even further while holding a US $20 bill: “You can make up all kinds of things – we can put in Berkshire coins…but, at the end of the day, it’s money. And it doesn’t There’s no reason in the world why the United States government… is going to let Berkshire’s money replace its own.”

In early April, the aforementioned Thiel, yet another well-known investor and arguably the most notable tech enthusiast, took aim at Buffett, citing it as “enemy #1” in terms of slowing the power of cryptocurrency in financial investment. He even went so far as to call Buffett “the sociopathic grandfather of Omaha”, portraying him as an old-timer in a field now seemingly dominated and in need of “youth”.

Read also : Will Crypto Replace Cash? Here’s what you can expect

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Written by Ryan Epps

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