He may indeed be correct. But Buffett hates anything that is outside the purview of the central planners at the Federal Reserve. He and his partner are always complaining about gold for instance.
His call isn’t exactly “out there.” Many of the big bank guys have been warning about the emergence of competing currencies to the dollar. Jamie Dimon famously has poo pooed cryptos all through the recent bull run. Of course that Dimon’s bank, JPMorgan, dabbled in crypto technology but couldn’t make it work for them has nothing to do with his position.
By the way, banks and bankers love it when existential threats emerge. No way they are working in the halls of government to undermine bitcoin and its brethren. No way.
Saying this cryptos do feel bubbly. When my kids are asking me to help them buy some bitcoin that’s a good indicator of bubbliciousness.
Still, my daughter is pretty hip to emerging technologies generally. She’s made some good calls.
Billionaire investor Warren Buffett told CNBC on Wednesday the recent craze over bitcoin and other cryptocurrencies won’t 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, also blasted frothiness in bitcoin — and in venture capital funding.