When Warren Buffett speaks, people listen. And Buffett is definitely not convinced with Bitcoin.
Buffett shared his thoughts on cryptocurrency investing in an interview with Yahoo! Finance in Omaha, Nebraska prior to the Berkshire Hathaway’s annual shareholder meeting.
“There’s two kinds of items that people buy and think they’re investing,”says the business magnate. “One really is investing and the other isn’t.” According to him, Bitcoin isn’t.
Buffett explains that, “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.”
Buffett added that when you buy cryptocurrency, “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.” He stays firm with his conviction that “That is not investing”.
A number of major banking institutions and blue-chip American corporations like IBM have started to embrace blockchain, the technology on which bitcoin is built.
But, in the meantime, Buffett has still not warmed up to crypto.
Watch the full interview here: