Warren Buffet Doesn’t Consider Bitcoin As An Investment, Says It’s Gambling

Billionaire investors and the third-richest person on the planet - Warren Buffet is known for being critical about virtual digital currencies and once again he talks about why he doesn’t consider Bitcoin to be any kind of investment but just a speculation.

In his recent talk with Yahoo Finance, Buffet said: “There’s two kinds of items that people buy and think they’re investing,” he says. “One really is investing and the other isn’t.” Bitcoin according to him comes in the latter category.

He also mentioned 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.”

As a result, Buffet consider investing in Bitcoin to me only a sort of speculation and not investment.

He said: “You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you want to gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”

This is not for the first time that Buffet has been openly critical of his thought on Bitcoin. Even four years back in 2014, Buffet had asked investors to stay away from it calling it a “mirage”.

Earlier this year in January when the entire crypto market was trying at its all-time high valuations, Buffet doubled down on his stand saying “In terms of cryptocurrencies, generally, I can almost say with certainty that they will come to a bad ending,” Buffet said. He also went on to say he’d bet on “every one of the cryptocurrencies” falling over the next five years. “But, I would never short a dime’s worth,” he added.

Earlier this year, Binance CEO Zhao Changpeng during an interview to Bloomberg TV said that cryptocurrencies is one such area where Warren Buffet knows nothing about. He said: “Warren Buffett is a guy I truly respect from an investment point of view, but I do not think he understands cryptocurrencies at all. It is what it is. I still respect him in other parts of his expertise. But I think on cryptocurrencies he’s making a big mistake.”