This week, BTC is struggling to overcome 7 straight weeks of declines, hovering around $30,000. The world’s leading cryptocurrency has erased its 2022 gains and is losing more than half of its value from its November 2021 highs.
At Berkshire Hathaway’s (NYSE:BRKb) most recent annual shareholder meeting on May 1, Warren Buffett, the head of the company, made the following comment:
“If you tell me you own 1% of the apartment buildings in the United States and offer me 1% of the stock for another $25 billion, for example, I’ll write you another check. It’s very simple. Now, if you told me you had all the BTC in the world and offered it to me for only $25, I wouldn’t take it. What would I do with them?”
This is the same statement Buffett has repeatedly made about gold. According to the famous investor, the yellow metal cannot be valuable and is a bad investment because it provides no income, profit or interest.
“BTC is a scam, a circus,” – Buffett repeatedly stated.
As Bitcoin Magazine notes, “To be valuable in the free market, any good, service or asset must have value to someone. And BTC, like other currencies, can only bring profit to its owner if it is leased or sold to someone else at a future (higher) price. In Buffett’s example, he rents out apartments, but he has to do so at a price high enough to cover expenses and repairs: the income stream, in economic terms, is equivalent to a high enough selling price spread over time.