Anthony Pompliano, the co-founder of Morgan Creek Digital, recently caused an uproar on his Twitter page by claiming that Warren Buffett could buy all BTC in circulation today. In the tweet, he stated that Buffet had $137 billion in cash, which was enough to buy almost all BTC in circulation.
Outpouring of Criticism
Shortly after the tweet, many people, including influential figures in the crypto community, replied to him. One of those who replied was CZ, the CEO of the Binance exchange. In his tweet, he noted that Pompliano’s math was deceiving. The reason for this was that everyone holding BTC would have to agree to sell the BTC to Buffett at current prices. CZ added that Buffet would only be able to purchase a small portion of all BTC at a very high price.
Pompliano agreed with CZ. In his response, he said that just because Buffet had the cash, it did not mean that he could get all the BTC. He added that he would not sell his BTC at a time when a rally seemed imminent. The heated debate went on for a while as more people gave their metrics on how such a purchase would cause an exponential increase in BTC prices.
Buffett and Bitcoin
Buffett is ranked fourth by the Forbes Billionaire List of 2020. For years, those in the crypto community have been coaxing him to invest in the crypto industry. Over the years, Buffett has made a number of smart investments through Berkshire Hathaway. For instance, during the 2008 crisis, he made the right moves and made huge profits while others were shying away from the markets due to fear.
Due to the unpredictable nature of the crypto sector, it is unlikely that he will invest in it. At the start of 2020, he hosted the founder of Tron, Justin Sun. The lunch appointment was organized in 2019 after Sun donated around $5 million to a charity but it only materialized in 2020.
During the lunch, Sun tried to give Buffett a better understanding of the crypto sector. However, Buffett’s opinion about the crypto sector was unchanged after the event. He still believes that the crypto industry has no value and it does not produce anything.