Warren Buffett on Bitcoin (BTC): Bitcoin is a Gamble
Warren Buffett has never shown himself to be a fan of Bitcoin and other cryptocurrencies. In an interview with Yahoo Finance, Buffett still isn’t jumping on the crypto train.
Buffett told Yahoo Finance that he doesn’t see Bitcoin as an investment. Instead, he believes it’s a gamble. He continued to explain that there isn’t anything wrong with that, per say, but that it’s important not to treat Bitcoin and other cryptocurrencies as anything more than a game. You can’t expect it to behave like an investment, because it isn’t an investment.
“If you buy something like a farm, an apartment house, or an interest in a business… You 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.”
He continued to explain that “You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”
Buffett’s stance on Bitcoin shouldn’t come as a huge surprise given his previous thoughts on the coin.
In 2014, Buffett likened Bitcoin to that of a mirage. He also compared Bitcoin to cheques: they’re both just ways of transmitting money. At the time he said that Bitcoin shouldn’t hold value because there were a number of ways money could be transmitted.
Despite the advancements in Bitcoin and other cryptocurrencies through the years, Buffett has little changed his tune. In January of this year, Buffett told CNBC that cryptocurrencies “will come to a bad ending.” Buffett is a crypto bear that never plans on buying Bitcoin.
Do you agree with Warren Buffett on Bitcoin?
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