Billionaire investor Warren Buffett has again talked negatively about cryptocurrencies, claiming that “buying bitcoin is not investing.”
Buffett serves as the chairman and CEO of Berkshire Hathaway. He is considered by some to be one of the most successful investors in the world. As of August 2017, he is the second wealthiest person in the United States, and the fourth wealthiest in the world, with a total net worth of $86.3 billion.
In an interview with Yahoo Finance in Omaha, Nebraska, Buffet explained his ongoing skepticism about bitcoin. He said “there’s two kinds of items that people buy and think they’re investing. One really is investing and the other isn’t.”
“If you buy something like a farm, an apartment house, or an interest in a business […] it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you,” he said. “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.”
The billionaire added that when people put thei money on bitcoin or other cryptocurrencies they’re not investing, but speculating.
“There’s nothing wrong with it,” he said. “If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”
In January, Buffett said that he would never invest in bitcoin and other cryptocurrencies, and predicted that they will “come to a bad ending.”
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said at the time. “When it happens or how or anything else, I don’t know. If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it. But I would never short a dime’s worth.”
Buffett’s anti-crypto stance is shared by Charlie Munger, Berkshire Hathaway’s Vice Chairman. In February, Munger said he never considered for one second having anything to do with bitcoin, adding that he detested it the minute it had been raised.
“The more popular it got, the more I hated it,” Munger said. “It’s just disgusting that people have been taken in by this. Bitcoin is noxious poison.”
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