Man, it seems like you can’t turn on the computer or TV now a days and NOT see a story about cryptocurrencies, and for good reason…
They’ve created so much wealth over the last few years – that it’s almost impossible to ignore the possibilities.
So it makes sense why so many people are talking about it.
The reason you KNOW cryptocurrencies are becoming more “real” is because one of the biggest financial brains on the planet is talking about it.
Warren Buffett recently sounded off about what he thought about cryptocurrencies- and his answer may surprise you.
First of all, let’s get this out front right now…
Warren Buffett isn’t a fan of cryptocurrencies.
In fact, he’s gone on record as saying that he’d “never” invest in Bitcoin or any other crypto, famously saying…
“We don’t own any, we’re not short any, we’ll never have a position in them. I get into enough trouble with the things I think I know something about. Why in the world should I take a long or short position in something I don’t?”
Those are pretty strong words…
However, the one thing you can take away from that statement is the fact that the reason he won’t invest in cryptos is because of his lack of knowledge.
That’s something that could change…
With just a little bit of research, and with his mind for money, Buffett could become proficient in cryptos in no time.
So why wouldn’t he learn as much as he could about it before he makes the decision to stay away from them?
Well, it turns out that there’s another reason for his aversion to cryptos…
A more pragmatic reason than just “I don’t know much about them”.
In a recent interview, Buffett 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.”
So the picture becomes clearer…
It’s not that he doesn’t believe that they’re a cash-making opportunity – it’s the fact that there’s no way to speculate the what, when, and how to trade, buy, or sell.
He expanded on this idea a little, saying, “You aren’t investing when you do that.
You’re speculating. There’s nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”
So there it is…
It’s not the crypto itself he has a problem with – it’s the fact that, to him, it’s not technically investing.
It’s no different to him than playing the lotto.
It’s not investing – it’s a gamble – and for somebody like Buffett, investing isn’t gambling.
And while it’s true that a large part of the world believes that investing in the market is a gamble – regardless of the stock you buy…
To him, investing isn’t gambling.
Whenever Warren Buffett pulls the trigger on a stock – it’s because he has thorough knowledge of everything about that company and the industry.
What has made Buffett a legend in investing – is the fact that he leaves no stone unturned.
From the very beginning, Buffett has always said that research is the investor’s best friend and, in the crypto world, there’s no amount of research that can help you prospect one way or another.
Now…
I’m not as staunchly against cryptos as Buffett is – because there are more than just a couple of stocks that we can invest in that could be tied directly to the performance of these things.
Like microprocessor company Nvidia Corporation (NVDA) or Bitcoin fund company, The Bitcoin Investment Trust (GBTC).
But…
That doesn’t mean I don’t share his thoughts on the fact that there’s nothing to TRULY know when it comes to crypto investing.
And that’s one of the main reasons I created GorillaTrades…
I thought, “why leave things to chance?”
The GT trading matrix doesn’t leave ANYTHING to chance. It’s like the Joe Friday of investing…
“Just the facts, Ma’am.”
So, whether or not you follow Buffett’s ideology on cryptos, or you’re all for them…
Know that there are OTHER options out there if you want a piece of their ever-growing pie.
And all it takes is a little bit of research.
“Real knowledge is to know the extent of one’s ignorance.” – Confucius
