Bitcoins will come to a bad ending: Buffett

Last Updated: Thu, Jan 11, 2018 12:51 hrs
FILE PHOTO - Berkshire Hathaway CEO Warren Buffett visits the BNSF booth before the Berkshire Hathaway annual meeting in Omaha

When Warren Buffett talks investment everyone listens. And his warnings, like we reported earlier, for bitcoin are nothing short of dire.

"We'll never have a position in them," Buffett, chairman and CEO of Berkshire Hathaway, told CNBC on Wednesday. "I can say with almost certainty that they will come to a bad ending."

The Sage of Omaha didn't just stop at bitcoins, going on to condemn all cryptocurrencies in the interview.

"Now when it (bad ending) happens, or how or anything else, I don't know. But I know this: 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," he stressed.

By its very nature, a put option becomes profitable when the value of the asset depreciates.

But Buffett was ready to admit that he knew little about digital currencies and this was why his statements of shorting them were only hypothetical.

"I get into enough trouble with things I think I know something about," Buffett explained. "Why in the world should I take a long or short position in something I don't know anything about."

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Buffett's statements came just a day after Jamie Dimon, Chairman and CEO of JP Morgan Chase, America's largest bank, told CNBC that he regretted calling bitcoin a fraud.



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