While millions of cryptocurrency enthusiasts around the world invest in bitcoin, ethereum, litecoin and coins, American billionaire, Warren Buffett, doesn’t see buying cryptos as an investment.
The 87-year-old CEO of Berkshire Hathaway, in an interview with Yahoo Finance Saturday, April 28, said in Omaha, Nebraska, that, “There’s [sic] two kinds of items that people buy and think they’re investing,” he said. “One really is investing and the other isn’t.”
“If you buy something like a farm, an apartment house, or interest in a business […] [y]ou can do that on a private basis […] and it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like Bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
Buffett believed, as always, that investments in digital coins are merely a speculative “game” and a “gamble” and that “no one knows exactly what it is,” and what could happen next.
His position on this has been seen severally. In December 2017, bitcoin price was close on $20,000USD and crashed before the year ended. Right now it’s trading below $10,000USD.
During its skyrocket value in 2017, many bought BTC hoping that it’d continue to grow.
Buffett, known as ‘Oracle of Omaha’ has been one of the major critics of cryptocurrency, and has expressed pessimism repeatedly over it over the years saying, “almost certainty” that cryptocurrencies “will come to a bad end.”
He attributed his stance against cryptocurrency to the lack of intrinsic value, stating that BTC cannot be valued because “it’s not a value-producing asset.”