16 Jan

Warren Buffett on Cryptocurrencies: ‘They Will Come to a Bad Ending’

WRITTEN BY Sarah Sands

Warren Buffett on cryptocurrencies

Major cryptocurrencies have seen strong performances in the past few months. Currently, bitcoin is the prominent cryptocurrency. It has had a strong performance in the past one year with gains of 1,588%. It made a record high of $19,343 on December 16, 2017. Warren Buffett said, “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”

Warren Buffett on Cryptocurrencies: ‘They Will Come to a Bad Ending’

He also 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.” He also said that his firm doesn’t have any long or short positions on bitcoin futures.

Many prominent market participants and fund managers already warned that the strong bitcoin rally could be dangerous for the market (SPX-INDEX) (SPY) (COMP-INDEX) (QQQ) and was likely just a bubble. On Thursday, January 11, 2018, bitcoin fell nearly 6% on early trading on the news that South Korea might ban trading on cryptocurrencies. Ripple and ethereum, other cryptocurrencies, fell 9% and 11%, respectively, on the day during early trading.

In the next part of this series, we’ll analyze Warren Buffett’s top buys in 3Q17.

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