Many digital currency traders already know Warren Buffett’s stance against Bitcoin, the first digital currency. In short, according to Buffett, Bitcoin and other digital currencies are not investments.
While Bitcoin’s popularity continued to rise throughout 2017, Buffett often stayed away from it and didn’t comment much. However, his recent statements to Yahoo Finance on Saturday (April 28th) show that his attitude towards digital currencies has not changed in any way:
If you buy something like bitcoin or some crypto currency, you have something that doesn’t really produce anything. You just hope another guy next will pay more. There’s nothing wrong with that. If you want to gamble, someone will come and pay more money tomorrow, this is some kind of game. This is not an investment.
Buffett’s views on Bitcoin contradict other financial legends, including venture capitalist Tim Draper and billionaire investor Michael Novogratz.
Just like Buffett, other critics of Bitcoin include the famous American economist Robert Shiller and JPMorgan Chase Chief Executive Jamie Dimon. Dimon even said that in 2017 he saw Bitcoin as a sah dishonesty..
However, most senior investors who criticize Bitcoin believe in blockchain technology, which forms the basis of digital currencies.
In a statement to Yahoo Finance, Buffett did not share his thoughts on blockchain technology, but instead spoke about digital-currencies. Of course, at this point, it is important to remember that Buffett’s investment model consists of well-established and robust business areas that are simple to understand and easy to deteriorate.