Warren Buffett does not know when prices for Bitcoin and other cryptocurrencies will crash, but the billionaire investor said “with almost certainty” that things are going to take a turn for the worse.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffett said during a Wednesday morning interview on CNBC’s “Squawk Box.”
Buffett said he had no idea about how or when things would go bad for Bitcoin and other cryptocurrencies, however: “When it happens or how or anything else, I don’t know.”
The value of Bitcoin, the most popular of the virtual currencies, has shot from $775 to over $19,000 over the past 12 months, possibly turning hundreds of early investors into billionaires along the way. But recently, Bitcoin, Ripple, Ethereum, and other digital currencies have been crashing.
Buffett gave the impression that he is mystified by, and wary of, cryptocurrencies. He said his company, Berkshire Hathaway, does not own any Bitcoin futures, nor is it taking a short position for Bitcoin or other cryptocurrencies. “I get into enough trouble with things I think I know something about,” Buffett said. “Why in the world should I take a long or short position in something I don’t know anything about?”
Buffett’s take on Bitcoin is unsurprising given that he simply does not believe in get-rich-quick strategies. He has made billions with a simple, disciplined approach, investing in businesses he understands and believes will thrive over the long haul. What’s more, Buffett is known for ignoring gimmicks, and always reacting carefully and cautiously when the market is heating up or going south.