Warren Buffett has made his opinion about Bitcoin and other cryptocurrencies known. He doesn't believe they are a viable alternative to currency. In a recent interview with Yahoo Finance, he explained exactly why his conclusion is that paying for bitcoins does not represent an actual investment. Rather, he says doing so falls more accurately under the category of speculation:
"If you buy something like a farm, an apartment house, or an interest in a business… You can do that on a private basis… And it's a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don't really have anything that has produced anything. You're just hoping the next guy pays more… You aren't investing when you do that. You're speculating."
Now, Genesis Mining, a cryptocurrency mining company based in Iceland, is trolling Buffett. The company has erected billboards outside of the Omaha offices of Berkshire Hathaway.
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The co-founder of Genesis Mining tweeted photos of the billboards, which refer to Buffett's admission that he was wrong about not investing in Google and Amazon in their early days.
The billboards say:
"Warren: You said you were wrong about Google and Amazon. Maybe you're wrong about Bitcoin."
At the annual shareholder meeting of Berkshire Hathaway earlier this month, Buffett said that Bitcoin was "probably rat poison squared." He advised his investors to avoid it and other cryptocurrencies.
Bitcoin and other cryptocurrencies have lost a lot of value this year. Last year, Bitcoin and its competitors seemed unstoppable as the valuation of cryptocurrencies were steadily on the rise. Bitcoin has declined by 40% since the beginning of this year.
