© Reuters.
By Laura Sanchez
Investing.com – The is struggling this week to break out of a 7-week run of declines, hovering around the $30,000 mark. The world’s top cryptocurrency has erased its 2022 gains and lost more than half its value from its November 2021 highs.
During Berkshire Hathaway’s (NYSE:BRKa) last annual shareholder meeting on May 1, Warren Buffett had this reflection:
“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 statement is the same one that Buffett has repeated on more than one occasion against gold. According to the famous investor, the can have no value and is a bad investment because it does not produce any return, profitability or interest.
According to Bitcoin Magazine, “To have value in a free market, any good, service, or asset must add value to someone. And bitcoin, like other currencies, can only generate a profit for its owner if rented or sold to someone else at a future (higher) price Apartments, which are freehold, can only recoup their investment cost by selling them to another buyer at a higher future.”
“In Buffett’s example, he rents them, but he must do so at a price high enough to cover costs and repairs: a stream of income, economically speaking, equivalent to a high enough sale price, spread over the time,” Bitcoin Magazine adds.