Will Cryptocurrencies Come to a “Bad Ending”? Warren Buffet Thinks So
- The Oracle of Omaha also admitted that he doesn't know "anything about" Bitcoin.
Just a day after JPMorgan Chase CEO Jamie Dimon said that he regrets badmouthing poor old Bitcoin so much, renowned investor Warren Buffet reaffirmed his crypto skepticism, telling CNBC that he would “never have a position in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term” and “that they will come to a bad ending.”
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He also admitted that his feelings were essentially nothing more than a hunch: “When it happens, or how, or anything else, I don’t know.”
Paradoxically, Buffet went on to say that he would “be glad to” buy a five-year put on “every one of the cryptocurrencies,” but he would never “short a dime’s worth.”
CNBC’s Jim Cramer rose to Buffet’s defense, saying that the Berkshire Hathaway CEO “didn’t want to hurt people.” Cramer has been critical of cryptocurrency in the past, saying that investors need to have a better understanding of the risks involved before jumping into the cryptocurrency markets.
In the past, Warren Buffet’s crypto criticism appears to have stemmed from a lack of at least some critical knowledge about the way that cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology work. After calling Bitcoin a “mirage” on CNBC in 2014, Buffet went on to compare Bitcoin to checks: “A check is a way of transmitting money too. Are checks worth a whole lot of money?”
In his most recent statement, Buffet added that he doesn’t “know anything about” Bitcoin or Bitcoin futures trading.
Could Buffet be Right?
While Bitcoin and other cryptocurrencies can never truly be stamped out by any singular government--or even a group of governments--governments can certainly make life very difficult for Bitcoin holders. The Washington Post reported in December that “governments can make the possession, use, and exchange of Bitcoin illegal.”
Indeed, the price of Bitcoin went into a serious tailspin after a sweeping set of crypto bans in China were enacted this September. Now, it appears that South Korea--the nation with the largest BTC trading volume in the world--is poised to set a similar set of bans into motion.
In the short term, this will undoubtedly have a souring effect on the price of Bitcoin. However, whether the coin will come to a “bad ending”, or indeed any kind of ending, remains to be seen.
Just a day after JPMorgan Chase CEO Jamie Dimon said that he regrets badmouthing poor old Bitcoin so much, renowned investor Warren Buffet reaffirmed his crypto skepticism, telling CNBC that he would “never have a position in Cryptocurrencies Cryptocurrencies By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw By using cryptography, virtual currencies, known as cryptocurrencies, are nearly counterfeit-proof digital currencies that are built on blockchain technology. Comprised of decentralized networks, blockchain technology is not overseen by a central authority.Therefore, cryptocurrencies function in a decentralized nature which theoretically makes them immune to government interference. The term, cryptocurrency derives from the origin of the encryption techniques that are employed to secure the netw Read this Term” and “that they will come to a bad ending.”
Discover credible partners and premium clients at China’s leading finance event!
He also admitted that his feelings were essentially nothing more than a hunch: “When it happens, or how, or anything else, I don’t know.”
Paradoxically, Buffet went on to say that he would “be glad to” buy a five-year put on “every one of the cryptocurrencies,” but he would never “short a dime’s worth.”
CNBC’s Jim Cramer rose to Buffet’s defense, saying that the Berkshire Hathaway CEO “didn’t want to hurt people.” Cramer has been critical of cryptocurrency in the past, saying that investors need to have a better understanding of the risks involved before jumping into the cryptocurrency markets.
In the past, Warren Buffet’s crypto criticism appears to have stemmed from a lack of at least some critical knowledge about the way that cryptocurrency and Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term technology work. After calling Bitcoin a “mirage” on CNBC in 2014, Buffet went on to compare Bitcoin to checks: “A check is a way of transmitting money too. Are checks worth a whole lot of money?”
In his most recent statement, Buffet added that he doesn’t “know anything about” Bitcoin or Bitcoin futures trading.
Could Buffet be Right?
While Bitcoin and other cryptocurrencies can never truly be stamped out by any singular government--or even a group of governments--governments can certainly make life very difficult for Bitcoin holders. The Washington Post reported in December that “governments can make the possession, use, and exchange of Bitcoin illegal.”
Indeed, the price of Bitcoin went into a serious tailspin after a sweeping set of crypto bans in China were enacted this September. Now, it appears that South Korea--the nation with the largest BTC trading volume in the world--is poised to set a similar set of bans into motion.
In the short term, this will undoubtedly have a souring effect on the price of Bitcoin. However, whether the coin will come to a “bad ending”, or indeed any kind of ending, remains to be seen.