“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,” told billionaire investor Warren Buffett to CNBC when questioned about Bitcoins and cryptocurrencies.
The Oracle of Omaha dismissed the craze over Bitcoins and cryptocurrencies saying that it won’t end well. The Chairman and CEO of Berkshire Hathaway added in an interview on CNBC’s “Squawk Box”, “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”
He stated, “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 don’t own any, we’re not short any, we’ll never have a position in them.”
Bitcoins Are A Mirage Believes Warren Buffett
Warren Buffett has been critical of Bitcoins since 2014. Back then, he had stated that Bitcoin was a mirage. He had said, “It’s a method of transmitting money. It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money? Are money orders? You can transmit money by money orders. People do it. I hope bitcoin becomes a better way of doing it, but you can replicate it a bunch of different ways and it will be. The idea that it has some huge intrinsic value is just a joke in my view.”
Interestingly, Warren Buffett’s remarks come a day after J.P. Morgan Chase Chairman and CEO Jamie Dimon backtracked from his earlier criticism of cryptocurrencies and said that he regrets calling bitcoin a fraud and believes in the technology behind it. Earlier in September last year, Dimon had called Bitcoin a fraud.
While Warren Buffett still believes that crytptocurrency will have a bad end, it is nevertheless finding many famous takers of its own. For instance, in his first New Year post, Facebook founder and CEO Mark Zuckerberg has stated that he wants to explore the power the cryptocurrency, as a technology and also as an important means to empower decentralisation. The Facebook founder wants to explore how cryptocurrency can be enabled in Facebook services.