87-year-old American investor and CEO of Berkshire Hathaway Warren Buffett once again questioned the feasibility of investing in cryptocurrencies, saying that “buying bitcoin is not an investment,” in an interview with Yahoo Finance.
“There are two types of things that people buy, thinking that they are investing,” he said. “One is really investment, the second is not. If you buy something like a farm, an apartment building or a share in the business, you can do it individually, and it fully corresponds to the definition of the investment. You consider the investment itself as a source of income. On the other hand, if you buy something like bitcoin or some kind of cryptocurrency, you don’t get anything that could produce anything. You just hope that the next person will pay more.”
According to Buffett, investment in cryptocurrencies is just a speculative game, while “no one knows exactly what bitcoin is.”
The legendary investor repeatedly spoke about the cryptocurrencies in a negative way, including that he said that “almost certainly they will end badly,” earlier this year. At the same time, Buffett admitted that cryptocurrencies are “something that he knows nothing about.”
He also mentioned several times about the lack of internal value in cryptocurrency, having first announced this in a conversation with CNBC in 2014, simultaneously calling bitcoin a “mirage”. Buffett, like some other experts, considers bitcoin a bubble, and in October of last year he said that the cryptocurrency can not be estimated because it is “not a value-producing asset.”