Bitcoin soared to $34,000 yesterday—however right here’s why Warren Buffett won’t ever personal Bitcoin. Zack Friedman writes on Forbes:
Buffett has known as Bitcoin, amongst different names, “rat poison squared” and has mentioned he received’t ever purchase the cryptocurrency. “I don’t have any cryptocurrency and I by no means will,” Buffett informed CNBC in February, when Bitcoin was buying and selling at about $10,000. Listed here are 3 explanation why Buffett won’t ever personal Bitcoin, irrespective of how excessive the worth of Bitcoin soars:
Buffett believes that Bitcoin has no underlying worth. As a worth investor, Buffett invests in corporations which are undervalued, produce secure and recurring money circulation and have the power to extend in guide worth. To Buffett, Bitcoin doesn’t produce earnings or dividends. Reasonably, the worth of Bitcoin is just what one particular person is keen to pay for it. On this regard, Bitcoin isn’t any completely different than the tulip craze of 1637. Subsequently, Buffett believes that Bitcoin has no inherent worth…
Whereas all investing entails a point of hypothesis, Buffett’s background is in insurance coverage and threat mitigation. Buffett doesn’t put money into “excessive fliers” — that’s not his sport. His sport is “purchase and maintain” — endlessly. He invests in corporations that develop over time, steadily and constantly.