[2018-01-10] Warren Buffett: Cryptocurrencies Will Come to a 'Bad Ending'

[moriskarlov]

Warren Buffett, the billionaire investor behind Berkshire Hathaway, is still not sold on bitcoin.

In an interview with CNBC Wednesday, Buffett predicted the demise of cryptocurrencies, saying:

“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.”

He continued to say he would bet on their price declining over the next five years if he could.

The noted investor further conceded he did not know a lot about bitcoin futures, but added that Berkshire Hathaway did not own any and would "never have a position in them."

Buffett's latest remarks come three months after he called bitcoin a "real bubble," and said investors would not be able to value the world’s largest cryptocurrency by market cap because bitcoin did not inherently produce value.

The bitcoin bear joins JP Morgan Chase chief executive Jamie Dimon in reiterating concerns about the cryptocurrency this week. While Dimon told Fox Business that he regrets calling bitcoin a “fraud” last year, he still does not believe in the cryptocurrency.

Shortly after his infamous comments, Dimon had doubled down, saying anybody "stupid enough to buy" bitcoin would "pay the price" for doing so.

https://www.coindesk.com/warren-buffett-cryptocurrencies-will-come-to-a-bad-ending/

[richardsNY]

By the time Bitcoin has reached a status of total acceptance, Mr Buffett will not be here anymore to witness Bitcoin's supremacy. If we had to go by the logic of these traditional market shills, Bitcoin wouldn't even be breaking through the $100 level back in the days. After that it wouldn't reach $1000, and after the MtGox debacle Bitcoin wouldn't be able to recover to +$1000 levels again. People have to understand that there is enough room for a new asset type in the financial world, and believe it or not, we have seen skeptics turn into bulls in quite a short period of time, and it will continue to happen....

[btcton]

“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.”

https://www.coindesk.com/warren-buffett-cryptocurrencies-will-come-to-a-bad-ending/

Well, if he is not willing to explain how exactly it is going to happen, then what grounds does he have to say that cryptocurrencies will fail? This is no better than speculation with no evidence. Warren Buffett simply does not seem to understand how cryptocurrencies work and how they compare to fiat currencies. It is true that many cryptocurrencies will fail, but from what he is saying, it seems like he is talking about the general concept rather than any specific ones, which leads me to believe that his knowledge on the matter is very limited, which surprises me as I have long thought of him as a wise investor. It could also just be the generational difference that has gotten him to the point of completely distrusting anything new that pops up that he cannot grasp.

[squatter]

Warren Buffett, the billionaire investor behind Berkshire Hathaway, is still not sold on bitcoin.

In an interview with CNBC Wednesday, Buffett predicted the demise of cryptocurrencies, saying:

“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.”

He continued to say he would bet on their price declining over the next five years if he could.

The noted investor further conceded he did not know a lot about bitcoin futures, but added that Berkshire Hathaway did not own any and would "never have a position in them."

I give him credit for that. His opinion on Bitcoin is negative, but he fully accepts his lack of expertise and won't put his money where his mouth is. That's fair enough. He's profited quite well in his time; no need to catch every investment opportunity.

Bitcoiners give Buffett a lot of shit, but he's not wrong here:

investors would not be able to value the world’s largest cryptocurrency by market cap because bitcoin did not inherently produce value.

It's a lot easier to game market capitalization with cryptocurrencies. There are no securities filings. Highly concentrated supply can be obfuscated.

But more to the point, money (including Bitcoin) is generally backed by faith -- faith that it will continue to have widespread acceptance and will hold value. Predicting whether people's faith shifts in favor of one cryptocurrency or another is a risky game.

Buffett is correct that value is not being created when the Bitcoin market cap increases. It's merely shifting value from one asset class to another. He's focused on value investing, which necessarily does not apply to Bitcoin. Fair enough.

[Washball]

Warren Buffet will never have a position in Bitcoin futures, because he's s afraid of the unknown. This is new technology he admits he's not familiar with. But in a way, he's right that cryptocurrencies will come to a bad ending. Maybe not all, but some will not make it. Also the price surge will not be forever. Some day the volatility will decrease and prices will stabilize.

[error08]

Bitcoin is getting too big to fail, even though we don't know whether bitcoin will stay here for another 10 years or not.
Considering the funds that has been invested in bitcoin, many people will be loss, especially the miners.
The only thing which can be the biggest obstacle of bitcoin is regulation, if most countries ban bitcoin, it will lose the value.

[akamit]

Now it is clear that every big names wants to create fud so that bitcoin price goes down and they can make a entry. Correct me if I am wrong.
Few days ago it was so called "commodity king" (sorry I forgot his name) who said something against bitcoin and now Mr. Buffett.

I just want to say to them, please stay away if you don't like cryptocurrency.
If you have chosen to stay stay away then just don't say anything about cryptocurrency. Just oil your own machine.

We (Crypto Community) love crypto currencies and will stay with it and support it as long it will exist.
Whatever happens in future we will face it, either positive or negative and we will find a solution together.

 

[Qartersa]

I have read too many write-ups about Mr. Buffet saying that cryptocurrencies like Bitcoin will have a terrible ending mainly because it is just a bubble to begin with. You know, there is no point of argument because how can you argue with someone whose mind is closed about a certain topic? He is entitled to his own opinion, so let us respect that in the same way that we want to be respected for believing in Bitcoin's futuristic value. Anyway his non-belief about it does not affect the way we are profiting in cryptos so it should not bother us too much.

[Tubsie]

Ofc a guy with a lot of Cash money will say the new form of cash will come to a bad ending, it litterly treathens what he worked his whole life for.
Hes trying to fight it but there is no fighting it, it has gotten to big and soon all the old people like that will die anyway, and it will leave all the young people that are actually interested in a new form of money.

Especially if they invest young and in a few years they have a lot of money from it.

[igordemin]

Ofc a guy with a lot of Cash money will say the new form of cash will come to a bad ending, it litterly treathens what he worked his whole life for.
Hes trying to fight it but there is no fighting it, it has gotten to big and soon all the old people like that will die anyway, and it will leave all the young people that are actually interested in a new form of money.

Especially if they invest young and in a few years they have a lot of money from it.

Come on, buisnesman of his caliber doesn't ceep any cash or money on a bank account. All his money are invested into different things, and all he have is just a pocket money.
I believe that his statements are just his way to check the stability of crypto currencies. And ways to lower the price of it before buing some.

[toolsmans]

They are smart in their own way. They know what they say to the public, what would then buy more assets in the shade.

[8270thNinja]

“When it happens or how or anything else I don't know.”

That's it, Just shut up Warren Buffet. You know nothing about Cryptocurrency, His statements is useless and shouldn't be given attention, he is just buying time to create FUDS and when Bitcoin touched a lower price he will announce that he love Bitcoin same how James Dimon Changed played the game from "Bitcoin-Cryptocurrency is shit" to "Wow I love Blockchain, I'll invest" Lol. Let's get some good sleep and let's stop hyping up Warren Buffet's Statement.

[BitHodler]

I believe that his statements are just his way to check the stability of crypto currencies. And ways to lower the price of it before buing some.

Could be, but he isn't in a position in life where he needs to do this due to his wealth, and it isn't his way of investing at all. He looks at traditional companies and assets that he takes major positions in, and that's basically it.

It has been like that basically for the last 10 or so years. It's a low risk way of investing, but one that's capable of bringing him where he is today. It has worked out all the time, and for that reason he won't change anything.

Crypto currencies expose his positions to insane risks, which he obviously isn't looking for. Never change a winning team they say, and that definitely applies here. Let him say whatever he wants to say, no one cares.

[8xbt.com]

sucking old man Buffett will come to a bad ending sooner than bitcoin.

[pixie85]

Warren Buffet will never have a position in Bitcoin futures, because he's s afraid of the unknown. This is new technology he admits he's not familiar with. But in a way, he's right that cryptocurrencies will come to a bad ending. Maybe not all, but some will not make it. Also the price surge will not be forever. Some day the volatility will decrease and prices will stabilize.

And he can be afraid. He has so much money that he will die a rich man and he doesn't need risky investments.
If you have 10000 USD Bitcoin looks like a great opportunity to double it and buy yourself a nice car or pay for school. If you have 100 million you can as well put it into a bank account for 3% a year and forget about it.