Warren Buffett yesterday reaffirmed his negative stance over cryptocurrencies, saying that Justin Sun did not change his mind on their worth and that he did not, and would not, ever own any. For some reason, crypto Twitter lost its mind, but Buffett and his ilk never were and never will be the target market for cryptocurrencies, and it’s time the community just started to look to the future rather than trying to convince the past.
Buffett Still Comparing Cryptocurrencies to Stock
Buffett’s renewed attack on cryptocurrencies came via a CNBC interview, where the billionaire discussed the lack of impact that Justin Sun and his cohort of crypto-lovers had on him during their $4.75 million lunch earlier in the week:
Once again, Buffett asserted his dislike for digital currencies because they “don’t produce anything” and that they can’t “mail you a check”, assertions that brought forward a rash of negative responses from the community:
Ask yourself, why is this man against crypto?
Because it threatens his control.
He loves the corrupt Fed money printing machine because it props up the stock market and makes him rich.
— Tom Anderson (@Proofbycontradi) February 24, 2020
This is the same guy that invested in companies that got bailed out by the government. And he said his secretary pays more taxes than him. As a reason that we should pay more taxes. I don’t trust this guy.
— Crypto Kevin (@kevindixon) February 24, 2020
At this point, after years of criticizing cryptocurrency, if you’re still getting riled up by Buffett’s ignorance of what is literally happening before his eyes then you need to get a hobby.
Cryptocurrencies Don’t Fit Buffett’s Investor Ethos
Buffett’s complaint that cryptocurrencies can’t mail you a check should tell you all you need to know about his investment thesis, and when you consider this thesis his dislike of Bitcoin and other cryptocurrencies makes sense – after all, it’s how the rich get richer.
Buffett, like most wealthy people, likes to make his money work for him. He has spent his life investing in stocks that pay a dividend every quarter, which no cryptocurrency does. As Buffett says in the interview, the best you can hope for is to sell your tokens to someone else at a higher price, which to him doesn’t make any sense – he would never hold a stock that didn’t pay a dividend, so why would he hold a cryptocurrency that doesn’t either?
Buffett is Part of the Institution
Buffett is part of the institution that cryptocurrencies typically rail against. He has been brought up on checks in the post – he doesn’t give a crap about the technological potential of Bitcoin because that doesn’t make him any money.
It’s time people began realizing that Buffett and those like him are part of the old school who have no interest in cryptocurrency on either an ideological level or a fiscal level. It’s time we stopped being astonished by his lack of understanding of cryptocurrencies and focused on converting those who can’t afford to own 5.6% of Apple’s stock to the new paradigm.
