One of the wealthiest men in the world Warren Buffett knows a thing or two of wise financial investments but one thing he is unsure of is cryptocurrency.

Some of the biggest names right now are investing in cryptocurrency. Whether it’s Elon Musk backing Dogecoin, or Bill Gates is a fan of Bitcoin ever since he got it as a gift. It’s basically a household name now, and how!

The only one who hasn’t jumped on the bandwagon yet, though, is the most successful investor in the world, Warren Buffet. But why!? To put it in his words, Bitcoin is “rat poison squared.” But is that a justified response to something as harmless as cryptocurrency?

Well first… Buffet likes his assets to yield value. He doesn’t even invest in Gold for the same reason. Stocks aid in a company’s growth and give investors a chance to earn dividends and grow their portfolios.

Bitcoin doesn’t do that… it’s an asset-based on price. It would only become valuable when used as a medium of transaction, but for now, its pricing is purely derived based on consumer sentiment. According to what Buffet said to the team of Yahoo Finance, you’re simply hoping the next guy offers you a better deal. And you only believe you’ll find the next guy willing to spend more if he believes he’ll find someone willing to pay more.

Which we’re sure you can agree isn’t always the most stable thing! Buffett also called it a gamble. Since Bitcoin has been highly volatile in the past, the probability of you making a good fortune from it is purely based on luck.

Buffet prefers to buy and hold his assets forever, and in the cryptocurrency market, that wouldn’t be much good. You may lose everything just as quickly. If you feel Bitcoin will do well in the next five to ten years and are comfortable holding on through the troughs, then you should invest in it today.

And third – Bitcoin promised to be the world’s first decentralized digital currency when it originally launched in 2009. It made it possible for you to send money to someone else without requiring the assistance of a bank or the government.

It will never function as a currency, according to Buffett. “It’s not a long-term medium of exchange or a store of value,” he explained. It’s a reasonable point of view. Indeed, the fact that Bitcoin isn’t a great digital currency is one of the reasons it has generated so many other cryptocurrencies.

Even Mark Cuban, a wealthy investor who retains 60% of his crypto holdings in Bitcoin, believes it is too slow and inconvenient to use as a currency. He does, however, consider Bitcoin as a potential asset with a store of value.

And one thing about Buffett… he doesn’t claim to know everything! He has stated that he wouldn’t invest in something he doesn’t fully understand, and even tech experts out there haven’t fully grasped the mining process.

Blockchain and decentralized currency are still in their raw form. Why would you short an asset that hasn’t developed yet? Warren Buffet applies his age-old investing principles to cryptocurrency, and we can’t really dismiss them as totally invalid.