Cryptocurrency Craze Won’t End Well, Warns Warren Buffett

Coinmama: Buy Bitcoin with Credit Card

We have known for some time now that Warren Buffett is not exactly a fan of Bitcoin, and the finance legend has once again shared his thoughts on cryptocurrencies in general.

Saying that they will not end well.

The billionaire investor is obviously referring to the recent craze over cryptocurrencies, saying that he would not take a short position on Bitcoin futures, neither does he own any. His comments come a day after JPMorgan Chase CEO Jamie Dimon said that he regretted mocking Bitcoin.

Not a fan

The Chairman and CEO of Berkshire Hathaway, talking to CNBC on Wednesday, said that he believes cryptocurrencies will almost certainly end badly. In fact, he can say this with almost certainty, considering how the market has expanded in recent months.

Or, this past year, rather.

This is what he said in an interview from Omaha, Nebraska:

“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. 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.”

We get it, not a fan.

He came clear in saying that he would not take a short position on Bitcoin futures, saying that the reason for that is that he knows little about the technology or phenomenon. Which is the general feeling we got from him the last few times has he expressed his concerns about the digital currency.

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

Makes sense, really.

Futures are a thing

And while he may be going the other direction, Bitcoin futures have become the big talking point lately, with exchange operators like CME Group and Cboe Global Markets having opened their platforms to allow for Bitcoin futures trading.

There’s also Goldman Sachs, which is starting a trading desk for digital assets.

Even as Merrill Lynch has blocked Bitcoin amid fear that the bubble could pop any time.

Bubble is what Buffett partner Charlie Munger also believes Bitcoin is. In fact, it is not the only thing in a bubble, with the right-hand man of Warren Buffett claiming that Silicon Valley is a bubble too, and that is due to the frothiness in venture capital funding.

Billionaire Munger, who turned 94 on New Year’s Day said that there was too much money in venture capital, comparing the current environment to the Dotcom bubble of 2000.

Buffett, 87, then shares the same view with regards to cryptocurrencies.

And one has to consider the age of these two individuals when taking into account their viewpoints on Bitcoin and cryptocurrencies. They have experience on their side, and have seen the markets go up and down over the years.

Then again, it was Buffett himself who said that chains of habit are too light to be felt, until they are too heavy to be broken. Perhaps the fact that he has stayed on the other side of the crypto revolution all this time is what makes him a Bitcoin bear.

Thoughts?

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