- Morgan Creek Digital co-founder Anthony Pompliano has claimed that Warren Buffet could buy Bitcoin’s entire supply with his fortune of $137 billion.
- Warren Buffet’s holding company, Berkshire Hathaway, is recording $50 billion in losses due to coronavirus.
There is speculation in the crypto community about the possibility that Warren Buffet could buy the circulating supply of Bitcoin (BTC). Buffet, a legendary investor and one of the richest men in the world, has a fortune of $137 billion. In contrast, Bitcoin’s market capitalization stands at about $166 million, at the time of publication, with a price of $9,033.
The possibility was proposed by Morgan Creek Digital co-founder Anthony Pompliano. Via his Twitter account, “Pomp” wrote that Buffet’s fortune is almost enough to buy all of Bitcoin’s circulating supply. The possibility provoked reactions, mostly negative, about Buffet. The legendary investor has taken a negative stance towards Bitcoin and cryptocurrencies in the past, referring to BTC as “rat poison squared”.
Buffet will never own Bitcoin (BTC)
One of the most noteworthy responses came from Binance’s CEO, Changpeng Zhao, who responded to Pomp that math can be deceptive. The scenario that Pomp raises is static and does not consider the dynamics of supply and demand, according to Zhao:
This is where math is deceiving. It’s only true if EVERY hodler is willing to sell at the current price, which is obviously not true, as there is no 21m BTC sell wall. Alas, Mr. Buffet will only be able to buy a small portion of bitcoins, and at very high prices at that.
In addition, other users replied to Pomp that Buffet does not really have the above amount in cash. The money is part of the capital of Buffet’s holding company, Berkshire Hathaway. In recent months, Buffet’s company has recorded losses estimated at $50 billion. Like other companies in the traditional market, Berkshire Hathaway has been hit by the crisis caused by the COVID-19 pandemic, a blow that had a devastating effect on the crypto market during March.
Since then, Bitcoin and the crypto market has been recovering, outperforming assets such as oil, gold and silver. However, Buffet has not changed his position. In any case, he has increased his criticism of cryptocurrencies. In an interview with CNBC, Buffet said that cryptocurrencies have no use or value because, in his opinion, they produce nothing. Buffet concluded by saying that he will never own any cryptocurrency.
Just as Buffet doesn’t want to buy cryptos, there will be holders who would never sell their BTCs to him, including Pomp. Morgan Creek Digital co-founder responded to the Binance CEO’s comment with the following:
Completely agree. Just because he has enough cash, doesn’t mean that he could get the Bitcoin. I’m not selling mine and I figure you’re not either.
In a similar tone to that of Buffet, but with regard to fiat money, Changpeng Zhao responded to Pomp with a question:
Why do we want fiat? Lol.