Bitcoin and gold, why Warren Buffett doesn't invest in either

Brands like Coca-Cola and Dairy Queen will continue to yield returns regardless of whether the currency is gold or bitcoins.

Assets like gold and bitcoin, Buffett asserts, fall into a category referred to as "Unproductive assets." The thesis behind these investments are that they only appreciate should someone be willing to pay more for the asset in the future than what was paid today.

Buffett's stance on gold is likely similar to that of bitcoin.

It's worth questioning whether the success of bitcoin hinges on doom-and-gloom predictions of the future, or whether like gold-enthusiasts, those shilling bitcoin require more investors to jump on the bandwagon to profit.

Another potentially appropriate analogy, and concerning feature, among both gold and bitcoin are the finite but growing supplies.

Like gold ore in the ground, there is a finite amount of bitcoin that can be mined-21 million coins.

Should demand remain stagnant then supply-side pressure could push down the price of bitcoin.

In a scenario where bitcoin becomes predominant world currency, people will still exchange it for cola and candy.

Stocks are generally a safer and more consistent investment than bitcoin.

Should Bitcoin achieve its moonshot and become a global medium-of-exchange or store-of-value, then the returns would be astronomical for investors.