Bitcoin’s drop was so precipitous that it surpassed $20,000 yesterday, capping off a difficult year for cryptocurrencies, equities, and bonds. The bitcoin industry is presently worth less than $1 trillion dollars.
Since its November highs, when it nearly reached $70,000, the leading digital asset has lost about 70% of its value. With its price reflecting its quick and strong growth, the digital asset was marketed to investors as a potential source of large returns.
But Warren Buffett, the well-known and extensively regarded investor and CEO of Berkshire Hathaway B (NYSE:BRKb), has never been enticed to invest in bitcoin and has always stated that he is not interested. According to a MoneyWise study, the following are the top three reasons why the finance magnate has always ruled out the possibility:
It is a waste of money. According to the expert, the value of bitcoin stems from the belief that someone else will be prepared to pay more for bitcoin in the future than they are now. And Buffett favors money earned via labor: “It has no special worth.”
It is neither a long-term means of trade nor a store of value. Furthermore, crypto cannot be called money, according to Buffett: “It does not satisfy the criteria of a currency.” The billionaire explained: “It’s not a long-term means of trade or a store of value,” The billionaire explained: For the time being, it is a traded asset.
He admits to not understanding. Buffett always invests in things he knows, how they function and how they produce money. “If you don’t understand, you’re a lot more delighted than if you understand,” he says. “You look at something and think, ‘This is magic.'”