Bitcoin warning from billionaire Warren Buffett: Cryptocurrencies are a toxic bubble that will most likely ”come to a bad ending”
01/22/2018 / By David Williams
Billionaire investor and all-around financial genius Warren Buffett has once again shared his thoughts on Bitcoin and other cryptocurrencies. To no one’s surprise, he still doesn’t care for them, not one bit. In a recent interview with CNBC, Buffett does his best to make it absolutely clear that he doesn’t see a good outcome for people who invest in Bitcoin and its ilk. In fact, he even went as far as to say that there will likely be a bad ending for everyone.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” he said in the CNBC interview which was posted online through the official CNBC website. He has stated multiple times that Bitcoin is a bubble, and appears to have maintained his view on it even after all of the times that the cryptocurrency made headlines.
“When it happens or how or anything else, I don’t know,” Buffett added. “If I could buy a fiver-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 has gone on record many times to talk about Bitcoin’s status as nothing more than just bubble. He has also mentioned in the past that he would never invest any money on it, by virtue of it being something that he doesn’t know anything about. And it seems that he still holds the exact same opinion even after all this time, based on this new CNBC interview.
“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,” explained Buffett. “Why in the world would I take a long or short position in something I don’t know anything about?”
Over the past 12 months, Bitcoin, as well as a few other cryptocurrencies, has seen a meteoric rise in market value, as more and more people begin and continue to take part in it and trade it in the open market. Its price has risen from only a few hundred dollars apiece to almost $20,000, only to fall back down again amidst a number of scandals. There are indeed people who prefer to live inside a sort of bubble and keep spending time and money on it, but there are also many people who are still on the fence about it.
Recently, Bitcoin made headlines once again when the world’s biggest Bitcoin trading platform, BitConnect, announced that it was shutting down. The announcement was made after numerous figureheads in the cryptocurrency industry made allegations that it was nothing if not a Ponzi scheme. As of this time’s writing, it functions as a mere wallet and information resource. And it isn’t the only service that seems to have fallen by the wayside despite Bitcoin’s meteoric rise.
For now, the future of cryptocurrencies remains difficult to get a read on. But multiple financial industry giants have started looking deeply into it, so you can bet that there’s going to be a lot of activity concerning it over the next 12 months at least. If nothing else, it’s surely going to be a wild ride that’s worth following, so we recommend that you do exactly that.
Read more about the latest happenings in the world of Bitcoin through Bubble.news.
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Tagged Under: bitcoin, blockchain, Bubble, crash, cryptocurrencies, Financial Advice, Investing advice, Investor, risk, Warren Buffett