Warren Buffett says cryptocurrencies will have "bad ending"
11 January 2018
Billionaire investor Warren Buffett told CNBC yesterday that the recent craze over bitcoin and other cryptocurrencies would not end well.
"In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending," the chairman and CEO of Berkshire Hathaway said.
"When it happens or how or anything else, I don't know," he added in an interview on CNBC's "Squawk Box" from Omaha, Nebraska. "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."
Also on the show, Buffett's right-hand man, Charlie Munger, voiced disapproval of the frothiness of bitcoin.
Earlier yesterday, the Omaha-based conglomerate announced the appointment of two new vice chairs. Gregory Abel, 55, will be vice chair of non-insurance businesses while Ajit Jain, 66, will be vice chair of insurance operations.
Buffett said he 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," he added. "Why in the world should I take a long or short position in something I don't know anything about."
The statement comes only a day after JP Morgan CEO Jamie Dimon offered regrets for earlier remark saying ''the currency isn't going to work'' in an interview with FOX Business Network last year.
Bitcoin surged to a high of over $19,000 last year, and has created a divide on Wall Street about whether it could be considered a legitimate financial instrument or not.
Earlier in 2014 as well, Buffett had warned earlier against cryptocurrencies.