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Warren Buffett said that buying bitcoin and other cryptocurrency is closer to gambling than investing.

Mr. Buffett, the 3rd richest person in the world right after Microsoft founder Bill Gates and Amazon founder Jeff Bezos, is a long-time sceptic of bitcoin and remains unconvinced by the virtual currency despite its considerable gains over the last year.

“There’s two kinds of items that people buy and think they’re investing. One really is investing and the other isn’t,” the head of Berkshire Hathaway 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… 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.”

Mr. Buffett also labelled bitcoin a “game” and a “gamble,” adding: “You aren’t investing when you buy bitcoin, you’re speculating.” Back in late 2017, when the price of the world’s most valuable cryptocurrency subsequently surged to around $20,000, Mr. Buffett warned that its price was a “real bubble”. “In terms of cryptocurrencies, generally, I can almost say with certainty that they will come to a bad ending,” Mr. Buffett said in January.

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