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The Oracle of Omaha, Warren Buffett, world renowned investor and head of Berkshire Hathaway, was asked about his views on cryptocurrency, especially that of bitcoin. While not as dour and hateful as his Vice Chairman of just two months ago, Mr. Buffett is not convinced bitcoin is anything more than gambling, a game.
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Oracle of Omaha Doesnât Believe Bitcoin is an Investment
Ahead of the 2018 Berkshire Hathaway Annual Shareholders Meeting, a near religious experience for legacy, mainstream investors, Warren Buffett was once again asked about his views on cryptocurrencies, such as bitcoin.
Mr. Munger (L) and Mr. Buffett
âYou arenât investing when you do that,â Mr. Buffett, 87, told Yahoo! Finance recently, referencing the worldâs most popular decentralized currency. âYouâre speculating. Thereâs nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, thatâs one kind of game. That is not investing.â
Mr. Buffett is actually quite reasonable compared with his longtime partner, Charlie Munger. Berkshire Hathawayâs Vice Chairman told an assembled Los Angeles audience in mid-February, âI never considered for one second having anything to do with [bitcoin], I detested it the minute it had been raised. The more popular it got, the more I hated it. Itâs just disgusting that people have been taken in by this.â Heâd go on to compare bitcoin to a ânoxious poison.â
Donât Really Have Anything that has Produced Anything
Traditional financeâs most famous investor is a tad more muted about crypto, but no less skeptical. âThereâs two kinds of items that people buy and think theyâre investing,â Mr. Buffett continued. âOne really is investing and the other isnât.â
With revenues at nearly a quarter trillion (yes, trillion) USD, Berkshire Hathaway has a lot of influence, especially in popular retail investing. As of this writing a single share of its Class A stock runs a cool $295,995 per, a price the more glassy-eyed of the bitcoin ecosystem say it too will reach one day. Mr. Buffettâs personal fortune hovers around $80 billion (yes, billion). He famously does not invest in what he doesnât understand. Crypto would seem to fall into that category.
âIf you buy something like a farm, an apartment house, or an interest in a business,â he insisted, âYou can do that on a private basis. And itâs 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 donât really have anything that has produced anything. Youâre just hoping the next guy pays more.â
What do you think about Mr. Buffettâs comments? Let us know in the comments below.
Images via Pixabay, Berkshire Hathaway.Â
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The post Warren Buffett: Bitcoin is Gambling, a Game, Not an Investment appeared first on Bitcoin News.
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