Warren Buffett, 87-year-old American investor and CEO of Berkshire Hathaway, laid out his latest thinking on cryptocurrency investing. In an interview with Yahoo Finance in Omaha, Nebraska, he said that buying bitcoin is not investing.

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

He tried to explain the difference between investments and merely a speculative gamble.

“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 Buffet doesn’t see any intrinsic value in bitcoin. Moreover, he claims that nobody knows what bitcoin is.

“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.”

Warren Buffet: Buying bitcoin is not investing

Watch 2-minutes short interview with Warren Buffet explaining why he thinks that buying bitcoin is not investing.