Call Me Old Fashioned
“I can say almost with certainty that they will come to a bad ending.” –Warren Buffett
The above quote came from a CNBC interview with Buffett regarding his views on bitcoin and cryptocurrencies in general.
I must admit I’m no expert in this area but I do know that betting against Buffett in the long term has proven to be a very bad bet.
I don’t like investing in bitcoin for the same reason I don’t like investing in gold. They don’t produce anything. The only way they create value is that you’re hoping somebody comes along in the future and pays you than what you bought them for. No thank you. Call me old fashioned but I’d rather invest in productive assets that are based on earnings and pay dividends and interest.
Maybe there’s a place for these cryptocurrencies in a traders short term portfolio but certainly not a long term investment portfolio.
Wes Wellington from DFA weighs in on bitcoin in this very short but insightful article: Tales from the Crypto: How to Think About Bitcoin