Warren Buffett revealed he believes the cryptocurrency craze won't end well

Billionaire Warren Buffett Bashes Cryptocurrencies, Admits Ignorance on the Subject

Billionaire Warren Buffett Bashes Cryptocurrencies, Admits Ignorance on the Subject

Warren Buffett Speaks On Cryptocurrency

Legendary investor and Berkshire Hathaway CEO Warren Buffett recently restated his bearish stance on cryptocurrencies by stating he can say, almost with certainty, they will “come to a bad ending.” According to the billionaire, his firm has no interest in jumping on the cryptocurrency bandwagon.

In an interview with CNBC, Warren Buffett notably stated:

“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending … When it happens or how or anything else I don’t know.”

Buffett, who had previously called bitcoin a “real bubble,” added that he would bet on “every one of the cryptocurrencies” falling over the next five years. The legendary investor then said that he would “never short a dime’s worth.”

Pressed by CNBC’s reporters on whether he would consider opening a futures position to short the cryptocurrency, Warren Buffett restated that he wouldn’t do it, adding that there’s no reason to do so. He justified his response by saying he already gets into enough trouble with things he knows something about, and admitting he doesn’t know anything about cryptocurrencies.

He said:

“I get into enough trouble with 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 anything about.”

Warren Buffett Keeping the bitcoin bubble narrative

To Buffett, Berkshire Hathaway just needs to focus on the stocks of what they believe are good businesses, and not on what is happening in the cryptocurrency ecosystem. Nevertheless, he believes things wont end well for cryptocurrency supporters, as he has “11 schools coming on Friday, and the questions will be on bitcoin.”

The billionaire admits he won’t know the answer to the questions he’ll face, but implied the craze behind the cryptocurrency ecosystem is based on speculation. This means that one day, as is the mainstream media’s narrative, the bubble will eventually burst.

Buffett’s words come at a time in which JP Morgan’s chief executive, Jamie Dimon, admits he regrets calling bitcoin a “fraud,” although he admits he isn’t a fan of the cryptocurrency just yet. Last year, Dimon notably compared bitcoin to the Dutch tulip bulb bubble, and threatened to fire employees trading cryptocurrencies.

At press time, bitcoin is trading at $14,501 as the cryptocurrency is up 0.4% in the last 24-hour period. The cryptocurrency surged over 1,400% last year, as it was trading at about $950 on January 1, 2017.

 

Featured image by Fortune Live Media, Flickr, CC by 2.0