The fall of Bitcoin has been so pronounced that after even touching $21,200 per unit, after a difficult year for cryptocurrencies, stocks, and bonds. The capitalization of the sector is below a trillion dollars.
This main digital asset accumulates losses of almost 70% since its November highs, when it almost touched $70,000. With the rapid and high growth that its price reflected, the digital asset presented itself to investors as an option for big profits.
But Warren Buffett, the renowned and followed investor, CEO of Berkshire Hathaway, was never tempted to invest in Bitcoin and, on the contrary, always claimed that he was not interested. According to a MoneyWise report, these are the three main reasons why the finance tycoon always ruled him out:
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Was Warren Buffett right? Three reasons why he never bought Bitcoin
- It is an unproductive value: According to the expert, the value of Bitcoin comes from the optimism that someone else will be willing to pay more for it in the future than they are paying today. And Buffett prefers money that comes from production. “It has no unique value.”
- It is not a durable medium of exchange or a store of value. And, according to this statement by Buffett, crypto cannot be considered money: “It does not pass the test of a coin. It is not a durable medium of exchange, it is not a store of value,” the billionaire has said. For now it is a tradable asset.
- He admits that he doesn’t understand. Buffett always maintains the position of investing in what he understands how it works and how it makes money. And he assures that investors can make the mistake of ‘getting excited’ more than expected about what they don’t understand, so he prefers to be cautious: “If you don’t understand it, you get much more excited than if you understand it. You just look at something and say, ‘That’s magic.’”
Published in Forbes Colombia.
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