X

Warren Buffett Thinks Bitcoin Will End Badly

Cryptocurrency falls on talk of South Korea ban
By Rob Quinn,  Newser Staff
Posted Jan 11, 2018 6:50 AM CST

(Newser) – Warren Buffett's advice on bitcoin and other cryptocurrencies can be summed up in two words: Stay away. In an interview with CNBC on Wednesday, the billionaire Berkshire Hathaway investor said that "in terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending." The 87-year-old, however, said he couldn't predict when that bad ending would occur—and admitted he doesn't know that much about cryptocurrencies. "We don't own any, we're not short any, we'll never have a position in them," he said. "I get into enough trouble with the 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 about?"

Charlie Munger, Buffett's 94-year-old right-hand man, also told CNBC he sees cryptocurrencies as a bubble. Investors "are excited because things are going up at the moment and it sounds vaguely modern," he said. "But I'm not excited." Bitcoin fell more than 10% to $13,200 early Thursday after South Korea's government announced that it plans to ban trading in cryptocurrencies, Reuters reports. The government later clarified that legislation to bring in a ban is being discussed with financial regulators, among others, but has not been finalized. Earlier this week, police raided South Korea bitcoin exchanges in a crackdown on tax evasion. (Kodak is creating its own cryptocurrency.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.