Warren Edward Buffett, the American business magnate, investor, and philanthropist who serves as the chairman and CEO of Berkshire Hathaway has given latest comments regarding the trending topic of cryptocurrencies.
When Warren Buffett grabs the mike, there is a pin drop silence in the room, investors listen for advice. In his latest interview, Buffett says he is still not convinced with Bitcoin.
Buffett expressed his thoughts about cryptocurrency investment in an exclusive interview with Yahoo Finance in Omaha, Neb, leading up to Berkshire Hathaway’s annual shareholder meeting.
“There are two kinds of items that people buy and think they’re investing,” he says. “One really is investing and the other isn’t.” He refers to Bitcoin not being an investment.
“When you purchase something like a farm, an apartment house or an interest in a business, you can see the productive results in return, and therefore it’s a perfectly satisfactory investment. On the other hand, if you purchase items like Bitcoins or other cryptocurrencies, you don’t really get a productive result, You’re just hoping the next guy pays more.”
Buffett further states that “when you purchase cryptocurrency you are not really investing you are just speculating and there is nothing wrong in that. It is just like gambling, wherein somebody else will come along and pay more money tomorrow, it is a game rather than an investment.”
Significantly, various banking institutes and blue-chip American corporations like IBM, have adopted the revolutionary Blockchain technology, the underlying ledged technology on which the Bitcoin transactions take place, However, given his latest comments, it is safe to say Warren Buffett is still not sold on the legitimacy of cryptocurrencies.