What’s the best revenge? The market value of bitcoin surpasses that of Berkshire. Buffett once called bitcoin a “rat drug”

More than two or three years ago, in the face of the market’s pursuit of bitcoin, “God of stocks” Warren Buffett made clear his position: bitcoin hot speculation is speculation, not investment. He even called bitcoin a rat drug to show his aversion to bitcoin. But now the situation has changed. After 300% increase in 2020, bitcoin recently broke through the $30000 barrier and continued to go up sharply. Its market value has also come above the Berkshire Hathaway owned by Warren Buffett. Bitcoin has risen more than 14% in the past 24 hours to $33937, with a total market value of $628 billion, according to coinmarket cap. So far, among the top 10 companies with the world’s largest market capitalization, Berkshire ranks 10th with $543.7 billion and Alibaba ranks ninth with $648.3 billion. This means that bitcoin’s market value of $628 billion is $84.3 billion higher than that of Berkshire, which is only $20 billion away from Alibaba. Over the past years, Mr. Buffett has shown his aversion to bitcoin, saying that investing in bitcoin is not investment, but gambling. As early as January 2018, Mr. Buffett said bluntly that speculating in virtual currencies would not have a good result: as far as virtual currencies are concerned, I am almost sure they will not. If there is a five-year put option that I can buy, I’d love to buy it every time, but even then I don’t want to put in a cent. In April 2018, just before the annual general meeting of Berkshire, Mr. Buffett also said in an interview with Yahoo Finance: when you do that (investing in bitcoin), it’s not investment at all. You’re speculating. It’s not a fault. But if you gamble with the idea that tomorrow someone will show up and pay a higher price for it, it’s a kind of game, but it’s not an investment. Then, in a CNBC show in May 2018, Mr. Buffett also called bitcoin a “rat drug”, causing great controversy. Mr. Munger, Mr. Buffett’s old partner, took the same view, saying at Berkshire’s 2018 annual general meeting that virtual currency assets were “poison” and “disgusting.”. I never, not even a second, have anything to do with [bitcoin], “he said. The moment the word was mentioned, I was disgusted. The more popular it is, the more I hate it. It’s disgusting for people to get involved like this. Why is Warren Buffet so? Why does Buffett talk about bitcoin like this? Blockbeats, the media rhythm of blockchain industry, once made an analysis in an article. According to the article, all the investments of Mr. Buffett can be roughly divided into three categories: monetary investment, productive assets and unproductive assets. Precious metals such as gold, silver and platinum, as well as collectibles, as well as virtual currencies such as bitcoin, are unproductive assets. Mr. Buffett’s inherent antipathy to such assets may be due to a failed stamp investment in 1959: at that time, he and his friends thought that a kind of stamp named “1954 blue eagle” had 10-30 times appreciation space, but after holding it for more than 20 years, these stamps did not appreciate, instead, they could only be sold at a 10% discount in the market. Investment target can not continue to produce, can only rely on the next batch of people to pick up the value, this kind of asset has become the thing that Buffett will never do. Since 1982, there has been no news of Mr. Buffett’s investment in art and collectibles. This is rooted in Mr. Buffett’s investment logic. In Mr. Buffett’s view, bitcoin is a non productive asset, not a value producing asset. At the same time, bitcoin does not support a wide range of uses and needs, so it is a “real bubble”. Strong crowd! How to allocate assets in 2021? Punch in! Get asset allocation secret book! (more wonderful financial information)

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