The legendary investor and financial oracle Warren Buffett changed his mind about Bitcoin.
He didn’t buy a cryptocurrency, furthermore, he doesn’t advise anyone to do this. In fact, he simply stated that Bitcoin is a tool for gambling.
But let’s just all agree, such an assessment is much better than ‘Rat poison’. And one more thing, Buffett bought Amazon shares and commented on why he did it just now.
How are these events related and will we ever receive a crypto investment from Warren Buffet himself?
A 10-year bet
Especially when a charitable lunch which will be held July 25 with Justin Sun around the corner... That’s what we are going to discuss today.
Bitcoin Produces Nothing
According to the financial oracle, BTC is not an investment, even more, it’s some kind of seashell.
Warren Buffett: Bitcoin Is An Asset That Creates Nothing - CNBC
Buffett explained his statement with the fact that bitcoin produces nothing.
Based on his logic, PayPal, Visa, Mastercard, Apple Pay, and Western Union should be referred to the category of seashells. This list can be continued because payment systems and money transfer providers produce nothing as well.
And what do banks produce?
Seriously, have you ever wondered what kind of products banks produce? Or bank stocks are not investments as well according to financial oracle?
In contrast to all the above, Bitcoin is a payment network with its own currency, which is decentralized and has a completely transparent issue.
But such arguments are unlikely to convince Warren Buffett with his thinking of the last century.
After all, his best investment is Coca-Cola, where everything looks clear who and what produces.
Buffett Bought Amazon Shares
Previously, Buffett was criticized for not investing in technology companies, particularly Amazon. And that’s he has already corrected.
The Oracle’s investment holding Berkshire Hathaway based in Omaha has finally bought Amazon shares.
Warren Buffett commented on this event very simply, that he was an idiot. At the same time, he followed the Amazon business development for a long time and admired their success.
As he explains, what Jeff Bezos did is a real miracle. And when he sees a miracle he prefers not to invest money in it.
Apparently, only after Amazon's capitalization exceeded a trillion dollars, Buffett decided that a miracle happened and he could buy some shares.
But let's take a look at the chart of Amazon securities. It’s very similar that they were at their price peak at that time when financial oracle bought them and then his phrase about “I was an idiot” has a completely different meaning.
Investing In Bitcoin?
Could it be that a legendary investor changes his mind and buys bitcoins?
We are sure that this can happen and there are three reasons for this.
Despite the desire of Buffett to make all the decisions independently, he cannot do it forever. The same Amazon shares were not bought personally by Omaha’s oracle, but by one of the investment managers. The so-called young blood, which over time will be at the helm of Berkshire Hathaway and their principles of investing are different from what Buffett does.
- Changing the mood of big business.
When the price rises, many consider digital assets a good option for investment.
- The syndrome of lost profits, aka FOMO.
In addition, during lunch with representatives of the cryptocurrency industry, which will be attended by leading personalities of the industry, Buffet will still be able to reconsider his opinion on the purchase of cryptocurrencies.