Cryptocurrencies Will Come To A Bad Ending, Says Warren Buffett

News | January 11, 2018 By:

Billionaire investor Warren Buffett has said that he would never invest in bitcoin and other digital currencies, and predicted that they will “come to a bad ending.”

Buffett serves as the chairman and CEO of Berkshire Hathaway. He is considered by some to be one of the most successful investors in the world. As of August 2017 he is the second wealthiest person in the United States, and the fourth wealthiest in the world, with a total net worth of $86.3 billion.

“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said in an interview with CNBC on Wednesday. “When it happens or how or anything else, I don’t know. If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it.  But I would never short a dime’s worth.”

Buffett added that his company, Berkshire Hathaway, remained focused on identifying good businesses and investing in them, but it would not take a short position on bitcoin futures.

“We don’t own any, we’re not short any, we’ll never have a position in them,” 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.”

Buffett’s comments were backed by his longtime investment partner, Charlie Munger. Munger said there was “too much money” in venture capital, and he compared the current crypto environment to the dot-com bubble in 2000.

“Bitcoin and the other cryptocurrencies are also bubbles,” Munger said. “Investors are excited because things are going up at the moment and it sounds vaguely modern. But I’m not excited.”