Warren Buffet: Bitcoin is not an investment, but a guess
Warren Buffet is certainly someone who cannot be spotted in the world of investment. The 87-year-old billionaire is the CEO and largest shareholder of Berkshire Hathaway, which owns or owns more than 90 companies. You would say that the man is good at what he does and understands things. Warren, however, is not pleased with Bitcoin and cryptocurrencies in general and sees Bitcoin as a huge gamble and certainly not as an investment.
"Stay away from Bitcoin"
It is striking that such a seasoned investor has such a negative opinion about the cryptocurrency. In 2014, during an interview with CNBC, he gave the advice to stay away from Bitcoin.
It would be a mirage and the idea that it would have a high intrinsic value was a big joke according to Warren. This year he was again interviewed by CNBC and the investor is still not impressed by Bitcoin and other cryptocurrencies. This time he thought he could almost say with certainty that it would all end to a bad end.
No investment but hope for a next buyer
Recently he came with the statement that Bitcoin is absolutely no investment. Warren indicates that there are two types of items that people buy and that they think is an investment.
He sees a farm, apartment or shares in a company as actual investments, but if you buy crypto coins you have nothing that could produce anything. As a Bitcoin buyer, you would only hope that the next one pays more for it.
Gambling game briefly through the turn
In a way, Buffet is right in that many people buy Bitcoins in the hope of selling them later for a higher amount. However, the comparison with a gambling game is a bit short of the turn. Although crypto coins are not physical goods, it is not so strange today to invest in digital things.
Just like companies, the crypto coins can fall in value and rise, but it is not like a gambling game, where you lose your money immediately after a wrong guess. With a gambling game, you do not have the chance that your bet could still yield something afterward.
No trust and Amazon and Google
Maybe Mr. Warren did not really study deep cryptocurrencies and wants to stick to the old ways. He also admits that he lost a lot of money when he had the chance to invest in Google and Amazon but did not because he did not believe it.
He is therefore not infallible and could very well be wrong about Bitcoin and the other cryptocurrencies.
Another billionaire and a big name in the investment world in Tim Draper and his opinion is right in front of Warren's. Draper is of the opinion that Bitcoin is gigantic and even more important would be the internet.