Buying Bitcoin is like gambling with your money and has nothing to do with proper investing, according to Warren Buffett.
Buffett, dubbed the "Oracle (NYSE:ORCL) of Omaha" for his investment acumen, told Yahoo (NASDAQ:AABA) Finance:
“There are two kinds of items that people buy and think they're investing. One really is investing, and the other isn’t. Bitcoin is not.
The billionaire investor added:
“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.”
According to the founder and head of Berkshire Hathaway (NYSE:BRKa), buying cryptocurrency is essentially speculating. He said there was nothing wrong with doing it, but it certainly did not constitute investing.
Bitcoin’s value is a joke
Buffett’s latest dismissal of Bitcoin mirrors his previous statements about the digital currency. Hosting a casual event for business students in November last year, the billionaire said you could not put a value on Bitcoin “because it's not a value-producing asset.”
Just because Bitcoin is an effective way of transmitting money, it does not mean anything when all things are considered, he said.
“A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money?... The idea that [it] has some huge intrinsic value is just a joke, in my view”.
Collapse of cryptos
In addition to his distaste for Bitcoin, Buffett has also predicted the demise of cryptocurrencies, stating in January:
“In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending.”
This article appeared first on Cryptovest
