Billionaire Warren Buffett: Investing in Bitcoin is like 'gambling,' it will eventually drain all your money; instead, you should buy these two types of assets when you have the chance.
The investment legend calls Bitcoin essentially worthless.
Bitcoin, the largest cryptocurrency in the world, is trading around its highest level in the past 10 months. However, in an interview on April 12 with CNBC, investment legend Warren Buffett called Bitcoin a 'worthless gambling token.'
The 92-year-old billionaire says that Bitcoin is worthless, but that cannot stop people from pouring money into investments to 'take big risks for big rewards.'
Recently, the cryptocurrency market has experienced a strong price surge. According to the data platform Messari, Bitcoin and Ethereum increased by 61% and 35% respectively. However, these increases are still 56% and 36% lower than their peaks in November 2021.
Price action for cryptocurrencies can be volatile. The market is also particularly sensitive to speculation surrounding the tightening of monetary policy by the US central bank. Risky assets like cryptocurrencies have been sold off in the face of high interest rates.
Warren Buffett says that everyone has a reckless instinct. This causes investors to flock to cryptocurrency. He states that allocating to this type of asset will 'gobble up all your money.'
He added: 'Chasing what can make money easily is human instinct. I always want to get rich slowly and I have a lot of fun on that journey.'
The Omaha prophet once mentioned two other types of assets he would like to invest in if given the chance. The first is agricultural land - a type of tangible asset. Farms can be established on these lands to produce food.
Another type of asset he is willing to invest in if the price is right is apartment buildings. The reason is that everyone will need a place to live. In short, Warren Buffett believes that investing in assets that create new value is a wise choice.
According to MI, Yahoo Finance
