The hype and excitement surrounding cryptocurrency has seemingly exploded in recent weeks. At this point, it seems that we’re being bombarded with bizarre stories involving new cryptocurrencies on a daily basis. From the joke of a cryptocurrency that was Dogecoin — which somehow amassed a market cap in excess of $2 billion last week — to Kodak’s unveiling of KodakCoin last week, cryptocurrency has implanted itself in the news ever since the price of Bitcoin began exploding late last year.
With the cryptocurrency craze in full swing, not everyone is willing to jump on board. More prominently, legendary investor Warren Buffett recently appeared on CNBC and articulated his belief that individuals heavily invested in crypto are in for something of a rude awakening at some point down the line.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” Buffet explained. “When it happens or how or anything else, I don’t know. But I know this: 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.”
When asked if he’s contemplated trading Bitcoin futures, Buffett said that he wasn’t interested. To be fair, though, Buffett did concede that he doesn’t know much about cryptocurrencies.
“I get into enough trouble with things I think I know something about,” Buffett added. “Why in the world should I take a long or short position with something I don’t know anything about… But I do think what’s going on will definitely come to a bad ending.”
Incidentally, Buffett has been talking about cryptocurrency for years now, though never in a positive light. Back in 2014, Buffett told investors that it was nothing more than a “mirage” and that investors should “stay away from it.”