Billionaire speculator Warren Buffett sparked another bitter word against bitcoin, explaining why he avoided trading with it.
“The asset itself creates nothing,” Berkshire Hathaway, chairman and chief executive officer, told CNBC Monday after Berkshire’s annual shareholders meeting. “When you buy non-productive assets, everything you rely on is that the next person will pay you more because they are even more excited than the next”, he said.
On Saturday, Buffett described bitcoin as a “mouse trap”, and Berkshire Hathaway vice president Charlie Munger said at the annual meeting that “cryptocurrencies” is just a ” dementia.”
Electronic currencies, especially bitcoin, have become popular in 2017, partly because of their sharp appreciation. Last year, bitcoin raised from under $ 1,000 to nearly $ 20,000.
Buffett sees cryptocurrencies as speculative assets. “You buy it, because you expect people who will also wanna buy it and then sell it to somebody else”.