Warren Buffet Admits Ignorance While Slamming Cryptocurrencies
Warren Buffet believes there is no positive end in sight for cryptocurrencies, but admits he knows very little about them.
Bitcoin and other cryptocurrencies will definitely come to a bad end, according to the ‘Oracle of Omaha’, Warren Buffet. In an interview with CNBC Jan. 10, billionaire manager of Berkshire Hathaway investment group said he believes that there is no possible positive outcome for the nascent financial technology:
"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.”
The investment tycoon also indicated that he has nothing invested in Bitcoin or other cryptocurrencies, either long or short, stating:
“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.”
A 'put' is a type of option contract that allows investors to sell certain securities at a specified price in a specified time. An investor would purchase a put option if they believed the underlying security -- in Buffet's case, all cryptocurrencies -- were going to decrease in value.
FUD or fundamentals?
While the clear concerns from Buffet may scare investors, many in the cryptocurrency world would likely see them as FUD - short for fear, uncertainty and doubt. One reason is Buffet’s own admitted lack of knowledge about cryptocurrencies. In the interview he told reporters:
"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.”
Buffet has previously shared his opinion that Bitcoin and other cryptocurrencies are bubbles.