Berkshire Hathaway’s CEO Warren Buffett said that not only will his firm never have a position in cryptocurrencies, but that the ending is coming for them and it will be a bad one.
“Stay away from it,” Buffett said at one time of Bitcoin. “It’s a mirage basically. The idea that it has some huge intrinsic value is just a joke, in my view.” Of course, at the time he made those comments, Bitcoin was priced at about $640. Now (at the time of this writing) it’s trading above $14,500.
At a Q&A session with business students in October, Buffett was again asked about bitcoin, to which he replied that the cryptocurrency is a “real bubble.”
In October of last year, Buffett told students at a Q&A that they should not value Bitcoin because it has no value. “You can’t value bitcoin because it’s not a value-producing asset,” Buffett said, according to MarketWatch. But Buffett, who is known for his patience and resolve, is still sticking to his guns and staying far away from the cryptocurrency.
“We don’t own any; we’re not short any,” Buffett said in an interview on CNBC of cryptocurrencies, such as Bitcoin and Ether. “We’ll never have a position in them.”
Bitcoin, the cryptocurrency that surged 1,327% in 2017 to become the largest, is off to a shakier start this year along with Ripple’s XRP, while ether, the second-largest, has risen to all-time highs. “What’s going on definitely will come to a bad ending,” Buffett said.
Buffett’s comments came a day after JPMorgan CEO Jamie Dimon said he regretted calling bitcoin a “fraud.” But others, such as Peter Schiff, believe that Bitcoin’s actual worth, is $0, and at some point, it will return to that amount.
Buffett has been quick to admit when he’s failed to make big money off missed opportunities. Recently, Buffett admitted that he missed the boat on both Alphabet (GOOG, GOOGL) and Amazon.com (AMZN) because he didn’t recognize their long-term value and the opportunity to buy them. However, Buffett’s aversion to technology stocks also allowed him to side-step much of the fallout from the bursting of the dot-com bubble in 2000.
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