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Edited by Kapil334 at 22-12-2023 05:16 AM
Buffett says, ""If you buy a farm or an apartment, or a stake in a company, in terms of these assets themselves, you can know what the farm can produce or what profit a company can make. You don't have to care about the stock market, and you can evaluate what return these assets themselves can bring. This is a satisfying investment."" He goes on to say:
""And when you buy Bitcoin or other cryptocurrencies, you don't really own something productive, you just hope that the next person will buy it at a higher price.
""When you buy cryptocurrencies, you are not investing. It's speculation. There's nothing wrong with that, it's just like betting that someone will buy it for more money tomorrow. It's a game, not an investment."" Buffett emphasizes the distinction in buying cryptocurrencies and says:
""If transactions of farms, apartments, or equities are prohibited, investors won't care too much. But if cryptocurrency transactions are prohibited, people will wonder why I should buy such a thing.""
Despite many major banks and U.S. companies like IBM beginning to embrace blockchain technology, which is the underlying technology used by Bitcoin, it seems Buffett is not convinced about Bitcoin or cryptocurrencies. In the past, he predicted the end of Bitcoin and stated that Bitcoin cannot be valued as it is not a value-producing asset. In a January interview this year, he also mentioned that he knows nothing about cryptocurrencies.
Former PayPal CEO Bill Harris also wrote last week that Bitcoin has no value, with arguments including limited usability, extreme volatility unfavorable for storing value, and people always expecting someone to buy it at a higher price. Berkshire Hathaway's 94-year-old vice chairman Charlie Munger also expressed disgust at the idea of being interested in Bitcoin in an interview with the Financial Times. |
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Post time 3-12-2023 21:57:40