The godfather of investing, and one of the wealthiest people alive Financial guru Warren Buffet has commented once again on the currency everyone is talking about- cryptocurrencies.
Warren Buffet is known as the CEO of Berkshire Hathaway and is currently 87 years old. At present no one comes close to his amount of experience in the financial and investment world.
He has claimed in an interview with Yahoo Finance in Omaha, Nebraska on April 28th that buying Bitcoin is not investing.
“There are two kinds of items that people buy and think they’re investing. One really is investing and the other isn’t. If you buy something like a farm, an apartment house, or 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,” Buffet said.
Buffet compares Bitcoin to gambling, due to Bitcoin being unknown to many people.
“You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing,” Buffet commented.
In the past, Buffet has commented about cryptocurrencies coming to a regretful end and that he does not know about cryptocurrencies at all.
There are many naysayers for Bitcoin, including ousted Paypal CEO Bill Harris who put Bitcoin down in public calling it ‘scam.’ Even the vice chairman at Berkshire Hathaway, 94-year-old Charlie Munger has called it ‘simply disgusting.’
With the number of pyramid schemes that have taken place, Buffett is paranoid about cryptocurrency’s existence.
Along with naysayers, there are plenty of supporters with many prominent organizations implementing Blockchain and cryptocurrencies. For example, IBM and Amazon have started using Blockchain services to better their products and services that are offered worldwide.
Warren Buffet’s counterpart in investing George Soros was said to get into the action on cryptocurrencies in the first week of April. Soros is already part of the cryptocurrency culture by buying a stake in Overstock.com which was the first major retailer to accept digital currencies. There are plans of his company developing an exchange for cryptocurrencies too in the future.
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