The number one cryptocurrency, Bitcoin, is losing its shine among investors. Bitcoin is currently trading at around $21,200, while the market cap of crypto assets has dropped below $1 trillion. The market leader has shed 70% of its value after hitting an all-time high of almost $70,000 in November. Previously, BTC was viewed by investors as an option for big gains thanks to its rapid growth. Notably, Warren Buffett, the famous and widely followed investor, has never been interested in Bitcoin. Moreover, he always claimed that BTC would never be his investment choice. MoneyWise disclosed three reasons why the finance mogul avoids Bitcoin: 1.Bitcoin is an unproductive asset. According to Warren Buffett, the value of Bitcoin comes from the optimism that someone else will be willing to pay more in the future than they are paying today. Meanwhile, the billionaire prefers money that comes from producing things. 2.Bitcoin is not a durable means of exchange or a store of value. According to Buffett’s statement, crypto cannot be treated as money. 3.Bitcoin is something he does not understand completely. Warren Buffett is sure that the key to success is investing in something you understand. That is, you should have a clear idea of how this asset works and how it makes money. The famous investor warns that it is very easy to make the mistake of getting excited about things that are unknown to you. “If you don’t understand it, you get much more excited than if you understand it,” he explained.
