American investor and CEO of Berkshire Hathaway, Warren Buffett, still remains unsold on bitcoin and cryptocurrencies, claiming that “buying Bitcoin is not investing,” in an interview with Yahoo Finance in Omaha, Nebraska, today, April 28.
“There’s two kinds of items that people buy and think they’re investing,” he said. “One really is investing and the other isn’t.” He 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.”
There is nothing wrong with speculating, he said. But speculating, in his view, is like gambling.
“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.
Several years ago, Buffet called cryptocurrency a “mirage,” arguing that it was a “joke” to assign a value to something just because it can be used to transmit money. “Are checks worth a whole lot of money just because they can transmit money?,” he asked at the time.
In December, he expressed concern that ICOs, which raised more than $3.2 billion in 2017 alone will not prove beneficial to the investment industry. “People get excited from big price movements, and Wall Street accommodates,” Buffet commented.
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