Years after trash-talking and calling it “rat poison,” Warren Buffett appears to be finally coming around. However, the billionaire is not stoked by the performance of the world’s most populous cryptocurrency.

Speaking during a Berkshire Hathaway (NYSE:) Annual Shareholder meeting last Saturday, Buffett said that Bitcoin has “got a magic to it.” But that’s as far as his conviction goes. He slammed the asset class as a “magic bullet” and stated that it wasn’t an asset of any productive value.

To be considered assets, they must deliver value to someone. And there’s only one currency that’s accepted. You can come up with all kinds of things- we can put up Berkshire coins… but in the end, this is money.

Buffet was surprised at the way people only see a bright future for Bitcoin. He said that Bitcoin is an asset that is solely speculation-based and doesn’t produce tangible results. “Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” he said.

He explained that the business magnate preferred other assets, such as real estate to Bitcoin. He explained:

If you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything. It is going to generate rent, and farms will produce food.

While Buffett may not see any utility in Bitcoin, others like MicroStrategy’s Michael Saylor have continued to bet big on the digital asset.

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