With the whole world going gaga over the crypto-currency trading for past few months, one person who is yet to change his views is Warren Buffett. American business magnate, investor, and philanthropist, Warren Buffett, while talking to CNBC about Bitcoins and cryptocurrencies, mentioned,
“I get into enough trouble with things I think I know something about. Why in the world should I take a long or short position in something I don’t know anything about,”
He has been critical about the whole crypto-currency bubble ever since 2014, when it was still in its infancy. Back then, he had stated that Bitcoin was a mirage. He had mentioned,
“It’s a method of transmitting money. It’s a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money? Are money orders? You can transmit money by money orders. People do it. I hope bitcoin becomes a better way of doing it, but you can replicate it a bunch of different ways and it will be. The idea that it has some huge intrinsic value is just a joke in my view.”
Buffett, The Chairman and CEO of Berkshire Hathaway, added in a recent interview with CNBC that,
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”
He further added,
“When it happens or how or anything else, I don’t know. 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. We don’t own any, we’re not short any, we’ll never have a position in them.”
Warren Buffett’s investing track is unparalleled and his advice mostly unquestionable. But it needs to be remembered that Buffett has mostly shied away from new technology. While talking about the Tech- Moguls, Facebook founder and CEO Mark Zuckerberg has stated that he wants to explore the power the cryptocurrency, as a technology and also as an important means to empower decentralisation. During the past week, PayPal founder and one of Facebook’s early-stage investor, Peter Thiel has reportedly bought Bitcoin worth USD 20 million. , Kodak became the latest addition to companies which are piling into cryptocurrencies. This week, Kodak announced that it would launch its own cryptocurrency, KodakCoin, a move that doubled the struggling company’s share price.
With Bitcoin and Crypto-currency value touching new heights each day, it is for time to tell who among the above mentioned big-wigs is right in their assessment. However, if this is not just a bubble, it will remain etched in the history of technical advancements a big leap for mankind.