Bitcoin's price increased from $7,200 to $9,600 over the last month. Despite cryptocurrencies making some people wealthy, many financial gurus and professionals warn investors to stay away from digital currencies. Jordan Belfort, the infamous Wolf of Wall Street says that “it's the biggest scam ever, such a huge, gigantic scam that's going to blow up in so many people's faces. It's far worse than anything I was ever doing.” Belfort is an American author, motivational speaker, and former stockbroker. In 1999, he pleaded guilty to fraud and related crimes in connection with stock-market manipulation and running a boiler room as part of a penny-stock scam.

Warren Buffett is also of the mindset that regular folks should look elsewhere if they are looking for long term investment growth. Buffett tells CNBC that “in terms of cryptocurrencies, generally, [he] can say almost with certainty that they will come to a bad ending. He says that he didn't understand Bitcoin and other blockchain-based digital assets. “Now, when it happens or how, or anything else, I don't know. We don't own any, we're not short any, we'll never have a position in them,” Buffett adds. “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 know about?”

One of the most important concepts that Buffett wants to make clear is that unlike buying stocks, bonds, real estate, or other types of traditional securities, Bitcoins do not have any intrinsic value. That is why he does not consider it, or other cryptocurrencies, to be a form of investment. “If you buy something like bitcoin or some cryptocurrency, you don't have anything that is producing anything,” Buffett says in an interview with Yahoo Finance. Value is typically a function of supply and demand. When it comes to Bitcoin, Buffett believes it's only worth what the next person is willing trade for it. “You're just hoping the next guy pays more. And you only feel you'll find the next guy to pay more if he thinks he's going to find someone that's going to pay more. “You aren't investing when you do that, you're speculating.”