Bitcoin has fallen so sharply that today it has even reached the $21,200 mark after a difficult year for cryptocurrencies, stocks and bonds. The capitalization of the sector is below $1 trillion.
This major digital asset has accumulated losses of almost 70% since its November peak, when it reached about $70,000. Thanks to the rapid and high growth reflected in its price, this digital asset appeared to investors as an option for making a big profit.
But Warren Buffett, a well-known and popular investor, CEO of Berkshire Hathaway (NYSE:BRKb), has never been tempted to invest in bitcoin, on the contrary, has always stated that he is not interested in it. According to the MoneyWise report, there are 3 main reasons why the financial magnate has always ruled out doing this:
- It is an unproductive asset. According to the expert, the value of BTC comes from the optimism that someone else will be willing to pay more for it in the future than he pays today. And Buffett prefers the profits made from production.
It is an unreliable medium of exchange or savings. And according to Buffett’s statement, cryptocurrencies cannot be considered money: “They don’t pass the currency test. It is not a reliable medium of exchange, it is not a means of saving,” the billionaire said. At the moment it is a tradable asset.
He confessed that he did not understand him. Buffett always adheres to the position of investing in what he understands, how it works and how it makes money. And he is sure that investors can make the mistake of being “excited” by what they don’t understand more than expected, so he prefers to be careful: “If you don’t understand this, you worry much more than if you did.” You just look at something and say, “This is magic.”
Despite the fact that his father was a wealthy businessman and congressman, little Warren Buffett did not hesitate to work from the age of six: he sold gum, cola, golf balls, collectible stamps, polished cars, delivered the Washington Post in the morning — 500 newspapers a day for a penny each. As a teenager, he even organized a small business of several pinball machines. By the age of 16, he had “made” $53 thousand in terms of modern money.
At the age of ten, his father brought him to the New York Stock Exchange, and at 11 Buffett made his first investment: he saved $120 and bought three shares of Cities Service Preferred through his sister for $38.25 apiece. First they collapsed, then grew to $ 40, after which Buffett sold them — and then regretted watching the quotes rise to $ 200.
Buffett is the living embodiment of the fact that it’s never too late to succeed: he made his first million at the age of 32, and earned 95% of his fortune after 60. In 1982 (52 years old), his fortune was equal to $376 million, at 59 years old he had $3.8 billion, and now, at 91 years old, as much as $96 billion. According to Forbes, he is in sixth place in the list of the richest people in the world — his fortune is more than the GDP of 125 countries of the world