Bitcoin Is Gambling Not Investing: Warren Buffett.
Warren Buffett, Billionaire investor and CEO of Berkshire Hathaway, said that buying bitcoin is not investing, but just a gambling.
In conversation with Yahoo Finance in Omaha, Nebraska, Buffett, who is against cryptocurrencies, declared his present thoughts regarding investing in bitcoin and other digital currencies.
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.”
Warren Buffett noted that when someone buys something such as a farm, a dwelling house or any kind of business it is a very satisfactory investment. You are looking at the investment itself to deliver income 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.”
What about cryptocurrency purchase Buffett said, “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, in an interview with CNBC, had alerted that cryptocurrencies will have a bad ending and he would not invest any money on them. In 2014, he had told that Bitcoin and the similar cryptocurrencies are a mirage and it was a joke that they had some huge intrinsic value.
Peter Thiel, who is PayPal co-founder and one of the prominent angel investors in tech and cryptocurrencies, recently said he remains bullish on Bitcoin.