Bitcoin Prices Climbing Higher, Warren Buffet Still in Denial

Berkshire Hathaway CEO, Warren Buffet, indicates that he would not purchase Bitcoins even if all of them are wrapped up and offered for USD 25. Buffet confirms the findings of a recent study by Investopedia that shows older persons are less likely to go crypto compared to millennials.

Bitcoin Edges Past USD 40,000, Geo-Politics Holding It Back 

Cryptos have exhibited extra volatility in the market, and experts are expecting the trend to continue as geo-political tensions intensify, inflation picks an upswing, and potential changes in the US monetary policy loom. In the last week of May 2022, the price of Bitcoin rose above USD 40,000. However, it fell back to near USD 38,000 on Monday this week. Still, when looking at the journey Bitcoin started in 2008, the price depicts a huge gain. 

Ethereum is following in the footsteps of Bitcoin, jumping above USD 3,000 last week before sinking back to USD 2,800 on Monday afternoon. 

Bitcoin started this week on a good note after the news that Fidelity was planning to start offering BTC for retirement. However, investors are still fixated on the worsening Russia-Ukraine war, and central bank tightening monetary policy, according to Edward Moya, a senior market analyst at Oada. 

Bitcoin is the largest crypto by market capitalization and is used as an indicator of status of the digital currency market. Although it hit a new all-time high, experts consider it a normal uptick for a crypto coin known for extreme volatility. 

Warren Buffet Says Would Not Buy BTC, Even if All of them Tagged USD 25

As the market shifts up and down, the legendary investor Warren Buffet, the CEO of Berkshire Hathaway, has said he will not purchase Bitcoin even if all of them were offered for only USD 25. When talking during Berkshire Hathaway’s annual shareholders’ meeting, Buffet said he was willing to pay USD 25 billion for 1% interest in all farmland in the US. However, this is what he had to say when it comes to BTC: 

“Now if you told me you own all the BTC in the world and offered it to me for USD 25, I would not take it because … I would have to sell it back to you ..?”

Buffet went a step further to discuss the US dollar. He insisted that for any asset to be considered to have value, it has to deliver something to the holder. “…there is only one currency accepted. You can come up with all kinds of things – we can put up Berkshire coins … but in the end, this is money,” he added while holding a USD 20 bill in his hand. 

The strong stance by Buffet on Bitcoin confirms a recent study on multi-generational financial literacy study by Investopedia. In the study, older investors, 58 to 76 years, were the least likely to hold cryptos. The study indicated that only about 1 in 3 in the age group (58-78 years) have advanced knowledge of cryptos and blockchain compared to 44% of millennials. Most of the older persons indicated they were concerned about retirement and would rather stick with the conventional investment instruments. 

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