Buying Bitcoin “Is Not Investing” Says Billionaire Investor Warren Buffett

Francisco Memoria
  • Billionaire investor Warren Buffett claims buying bitcoin isn't investing.
  • According to him, buying cryptocurrencies is speculating, as people just want others to buy at a higher price later on.

Berkshire Hathaway CEO and billionaire investor Warren Buffet has recently stated he believes buying cryptocurrencies like bitcoin “is not investing,” and laid out his thoughts on the crypto market during an interview with Yahoo Finance in Omaha.

According to the investor, there are two kinds of items people buy when they think they’re investing. He explained that “one really is investing, and the other isn’t.” Bitcoin, per Buffett, isn’t.

The CEO then compared investing in cryptocurrencies to other investments. He said:

“If you buy something like a farm, an apartment house, or an interest in a business… You can do that on a private basis… And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”

Warren Buffett

Buffet continued, adding that buying bitcoin and other cryptocurrencies isn’t investing, but speculating. Although he claimed there’s nothing wrong with speculating, he implied cryptocurrency users just buy so someone else buys at a higher price later on, which to him is a “kind of game.”

Per his words, if regulators stopped people from trading farms, apartments, or even equities, investors would still do fine. If the same happened to “some bitcoin which nobody knows exactly what it is,” people wouldn’t want to buy.

Notably, the billionaire has earlier this year poured contempt on the cryptocurrency industry, stating that he can say “almost with certainty” that cryptocurrencies would come to a bad ending.

During an interview on CNBC’s “Squawk Box,” Buffett was asked if he had considered opening a futures position to short the market. He revealed he wouldn’t do it, as he gets into enough trouble with things he knows something about, so asked “why in the world” should he take a short position in something he “knows nothing about.”

Nevertheless, he maintained cryptocurrencies would come to a bad ending, and added Berkshire Hathaway doesn’t own or short any cryptocurrencies, and “will never have a position in them.”

North Korean Hacking Group Reportedly Raises Efforts to Steal Cryptocurrencies

Michael LaVere
  • A new report warns N. Korean hacking group Lazarus has turned its focus towards stealing cryptocurrency.
  • Lazarus became infamous in 2014 for its hack of Sony Pictures over the release of The Interview. 

A North Korean hacking group has reportedly turned its focus towards stealing cryptocurrency as the country’s economy struggles from the impact of the COVID-19 pandemic. 

According to a report by Daily NK, the North Korea-based hacking group Lazarus has increased its effort to steal cryptocurrency. The group first became infamous for its hack of Sony Pictures in 2014 over the release of the movie the Interview. Lazarus was also responsible for the high-profile Bangladesh Bank cyber heist in 2016. Lazarus is suspected of being behind several high-profile cryptocurrency exchange hacks.

ESTSecurity, a cybersecurity firm located in Seoul, warned the hacking group was now focused on stealing cryptocurrency.

The report reads, 

Lazarus is carrying out [adaptive persistent threat] APT attacks not only in South Korea but also in the international sphere, including the United States. They are also engaging in cyber-espionage operations as well as activities designed to generate foreign currency.

The hacking group is using malicious emails disguised as updates from cryptocurrency payment services in order to infect user devices. 

According to the Daily NK report, analysts are warning that stealing cryptocurrency could bring “enormous profits” to North Korea, amidst the desolation of the coronavirus pandemic and economic sanctions imposed on the country. 

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