Why Warren Buffett Recommends You To Be Wary Of Bitcoin | Digital Trends Spanish
Considered one of the world’s largest investors, Warren Buffett has been a fervent critic of the bitcoin, the digital currency that has surprised the market at the beginning of 2021.
The chairman of Berkshire Hathaway, one of the world’s leading equity holding groups, is simply not convinced that cryptocurrencies are the future. What’s more, it promises a dark future for them.
If you are thinking of investing in bitcoins, these are some of the reasons why Warren Buffett simply recommends that you don’t.
They do not produce or generate value
Although he considers it to be an “ingenious” system and that the blockchain on which it is based is important, it warns that one of the main problems is that they simply have no value.
“Basically they have no value and they don’t produce anything. They don’t breed, they can’t send you a check, they can’t do anything. You expect someone else to come and pay you more money for them later, but then that person has the problem, ”he said.
In his opinion, “you will be much better off if you own productive assets in the next 50 years than if you own pieces of paper or bitcoins”.
For Buffett, everything that surrounds cryptocurrencies is an illusion that “attracts a lot of charlatans.”
“It’s something where non-stellar people see an opportunity to take advantage of people who are trying to get rich, because their neighbor is getting rich buying these things that none of them understand,” he said.
According to the investor, “people have illusions that something like this is going to change their lives.”
Not a coin
Buffett has said that more than a coin, it is a “very effective way of transmitting money”, such as checks.
“It is not a coin. It does not meet the test of a coin. I wouldn’t be surprised if it wasn’t in circulation in 10 or 20 years. It is not a durable medium of exchange, nor is it a store of value. It’s been a very speculative Buck Rogers type of thing, “he said.
According to the executive, another of the problems of bitcoin is that it can also be used to hide illegal activities.
“It has been used to move a good amount of money illegally […] You can see that as the economic contribution of the bitcoin to society ”, was another of his questions.
A bad ending
With all of these elements, Buffett predicts a bad ending for cryptocurrencies in general. “It will feed on itself for a time and sometimes for a long time and sometimes in extraordinary numbers. But they come to bad ends and cryptocurrencies will come to bad ends ”, he anticipated.