Bitcoin — the world’s leading cryptocurrency, currently trading at $23,000 — is worth 67% less than its all-time peak of $69,000 on Nov. 10, 2021.

Then again, the mercurial coin has rallied 40% in 2023, Yahoo! Finance reports.

Warren Buffett maintains he will never be duped by Bitcoin, no matter how high its value goes, and gives three sound reasons why.

“If you owned all of the Bitcoin in the world and you offered it to me for $25, I wouldn’t take it,” Buffett says.

Bitcoin and other cryptos “will come to a very bad ending,” Buffett predicts.

1.)  Bitcoin Has ‘No Unique Value’

Buffett says he only invests in companies that produce something of value and that have strong cash flow.

Cryptocurrencies “don’t reproduce,” Buffett reasons. “They can’t mail you a check. They can’t do anything — and what you hope is that somebody else comes along and pays you more money for them later on. But then, that person’s got the problem.”

The frenzied excitement that Bitcoin inspires is based on frothy optimism that it will continue to rise in value, rather like the dot-com mania, he says.

2.)  Crypto Is Not Money

Money is defined as an asset that can be exchanged, that represents worth, and that can show numerical value.

Cryptocurrencies are none of the above. Rather, Buffett believes, they are a mere “mirage.”

“It does not meet the test of a currency,” says the Oracle of Omaha. “It is not a durable means of exchange. It’s not a store of value.”

“I don’t have any Bitcoin. I don’t own any cryptocurrency. I never will,” Buffett vowed in 2020.

3.)  He Simply Does Not Understand It

Buffett says a big part of his wizardry is being able to understand his investments.

He does not dig cryptocurrencies.

“I get in enough trouble with things I think I know something about,” Buffett reasons. “Why in the world should I take a long or short position in something I don’t know anything about?

“If you don’t understand it, you get much more excited than if you understand it. You can have anything you want to imagine if you just look at something and say, ‘That’s magic.’”

Buffett’s Keys to Picking Winning Stocks

Buffett says his knack for picking highflying stocks is finding strong companies with undervalued stocks and holding his positions for long periods of time.

That means finding companies with solid profit margins and unique products that cannot be readily substituted.

That also means resisting so-called stock “buys.”

“It’s far better to buy a wonderful company at a fair price than a fair company at a wonderful price,” Buffet says.

There’s still a chance Buffett could have a change of heart over Bitcoin and cryptocurrencies, however. During the dot-com bubble, he didn’t own a single technology stock.

Now Apple is Berkshire Hathaway’s largest holding.