The ‘craze’ that has been created over cryptocurrencies such as Bitcoin will not end well, according to US Billionaire Warren Buffett.
The billionaire businessman has ruled out any investment into Bitcoin or other cryptocurrencies, stating that it will only come with a bad ending after the ups and downs the virtual coin has had.
Chairman and CEO of Berkshire Hathaway, Buffett told CNBC: “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. If I could buy a five-year put on everyone one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth.”
Out of all the options Bitcoin has become the most popular out of the range of cryptocurrencies available to trade with but has taken a rollercoaster journey the past year as the value has soared and plummeted throughout 2017. The unpredictability of the cryptocurrencies’ status is what could lead some, such as Buffett, to hold such negative views on investing.
Bitcoin has dropped 7% to just under $13,800 on Thursday and Buffett is not the only one to hold concerns over the virtual currency, after South Korea’s government has just announced putting a plan in place to implement a law officially banning the currencies and any trading associated with them in the country.
The UK Treasury is also among those holding concern over Bitcoin and its status, hoping to implement a stricter regulation over the trading of the virtual coin. HM Treasury is hoping to be able to force dealers to reveal their identities in the hope of making the exchanges much safer and more open.
Buffett is among the many top business bodies to hold the negative opinion on Bitcoin, however JP Morgan’s CEO Jamie Dimmon gave the cryptocurrency a bad review slating it to be stupid and dangerous as well as calling it a ‘novelty’ that won’t do as well as a normal bank like his without the backing of the government.
Despite the negative opinions and dropping in value, Bitcoin still sits at the top spot of cryptocurrencies and tempts more investors. In his interview with CNBC Buffet stated he would never take short position on Bitcoin futures, especially due to his unfamiliarity with the process.
He said: “We don’t own any, we’re not short any, we’ll never have a position in them. 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.”