A ‘bad ending’ is coming for cryptocurrencies, warns Warren Buffett

Buffett’s Berkshire Hathaway has also announced an expansion of its board to 14 members

PUBLISHED : Wednesday, 10 January, 2018, 11:56pm
UPDATED : Thursday, 11 January, 2018, 10:19am

Investment guru Warren Buffett has warned people away from cryptocurrencies such as bitcoin, saying that their skyrocketing value is likely fleeting.

“In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending,” Buffett said in an interview on CNBC on Wednesday.

Now when it 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.”

Buffett, the 87-year-old chairman and CEO of holding company Berkshire Hathaway, is one of the world’s most prominent investors. He is worth an estimated $86.3 billion.

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Buffett’s comments came one day after JPMorgan & Chase CEO Jamie Dimon said he regrets calling bitcoin a fraud, referring to comments he made at a banking conference in September.

“The blockchain is real,” he told Fox Business. “You can have cryptodollars in yen and stuff like that. ICOs … you got to look at every one individually.

“The bitcoin was always to me what the governments are going to feel about bitcoin when it gets really big. And I just have a different opinion than other people.”

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That is a sharp turnaround from October, when Dimon said: “If you’re stupid enough to buy it, you’ll pay the price for it one day.”

Bitcoin has taken the investing world by storm, surging to a high of more than $19,000 and created a divide on Wall Street about whether it is a legitimate financial instrument.

Also on Wednesday, Berkshire Hathaway announced that it was adding Gregory E. Abel and Ajit Jain as directors, boosting the size of its board to 14 members.