With Warren Buffett, the legendary investor, often being critical of cryptocurrencies like Bitcoin (BTC), a common question has surfaced: Could he actually buy all Bitcoin in circulation if he wanted to? Recently, Changpeng "CZ" Zhao, CEO of Binance, weighed in on this intriguing hypothetical.
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1. Warren Buffettâs Massive Wealth đ°
Warren Buffett is one of the richest individuals in the world, with a net worth hovering around $120 billion. In theory, his wealth far surpasses the total value of Bitcoin's circulating supply at current market prices. As of now, the total market capitalization of Bitcoin is roughly $500 billion.
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2. The Challenge of Buying All Bitcoin âïž
CZ points out that even though Buffett might have the financial means to attempt a massive purchase, buying all Bitcoin would be practically impossible. Hereâs why:
- Holders Unwilling to Sell: Many Bitcoin investors are in it for the long term and wouldnât sell their holdings, even for a premium.
- Price Surge: If someone like Buffett started buying large amounts of Bitcoin, the price would skyrocket due to limited supply, making it more expensive with each additional purchase.
- Decentralization: Bitcoin is held by millions of people globally, not controlled by any central authority. Acquiring all BTC would require cooperation from millions of independent holders.
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3. Market Impact & Liquidity Issues đŒ
Even if Buffett tried to accumulate a significant portion of Bitcoin, it would cause market liquidity issues. The demand for Bitcoin would skyrocket, drastically pushing up the price, and it would become impossible to acquire a large portion of the total supply without causing severe volatility.
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4. CZâs Take đ
According to CZ, this hypothetical highlights Bitcoin's strength in decentralization. No single entity, even someone as wealthy as Warren Buffett, could ever gain full control of Bitcoin. This is a core aspect of what makes Bitcoin resilient and valuableâits supply is fixed, and its ownership is widely distributed.
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Conclusion:
While Warren Buffett has the wealth to make a significant splash in the Bitcoin market, buying all Bitcoin in circulation would be impractical due to liquidity constraints, unwilling sellers, and skyrocketing prices. The decentralized nature of Bitcoin ensures that no single person, not even Buffett, could ever own it all.
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