Davos WEF
Davos WEF

LinkedIn founder: Here's the real value of bitcoin

Reid Hoffman, speaking on June 12, 2014.
David Paul Morris | Bloomberg | Getty Images

LinkedIn founder and Chairman Reid Hoffman warned on CNBC Thursday that bitcoin investors should only use money they're willing to lose.

Hoffman, who owns bitcoin and invests in two bitcoin companies, said the least interesting part of the digital currency is its trading price, which has been very volatile.

Bitcoin as a platform for machine-to-machine transactions is where the real value lies, he said on "Squawk Box" from the World Economic Forum in Davos.