“Oracle of Omaha” Foresees Crypto Apocalypse
Warren Buffett, the billionaire investor nicknamed the “Oracle of Omaha,” told CNBC that Bitcoin and other cryptocurrencies would come to a bad end. His comments immediately triggered a reaction from some experts.
Berkshire Hathaway chairman and CEO Warren Buffett said in an interview with CNBC on Wednesday that he would never buy Bitcoin or any other cryptocurrency. The investor, whom many consider the most successful one in the world, believes that troubled times lie ahead of digital coins.
“In terms of cryptocurrencies, generally, I can say almost with certainty that they will come to a bad ending,” Buffett said, going on to add:
“Now, 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.”
However, Buffett acknowledged that he did not really understand Bitcoin and other blockchain-based assets. When asked if he would trade Bitcoin futures by taking negative positions on the cryptocurrency, Buffett replied with a categorical “no,” adding:
“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?”
It did not take long for comments to spring up in the wake of Buffett’s interview. Later that day, Jim Cramer, former hedge fund manager and co-founder of TheStreet, told CNBC’s “Squawk on the Street” that Buffett meant no harm with his comments.
“He doesn't know when it's going to crash, but he didn't say it was a fraud,” Cramer noted, adding that Buffett is not afraid to air his opinions.
Elsewhere, Binance CEO Zhao Changpeng told Bloomberg that the “Oracle of Omaha,” as Buffett is often called, was wrong to come up with such a negative prediction for the crypto market. Changpeng said:
“Warren Buffett is a guy I truly respect from an investment point of view. I think he knows stock investment, equities investment very well. But I do not think he understands cryptocurrency at all.”
“So it is what it is, I still respect many other parts of his expertise, but I think on cryptocurrency he is making a mistake,” Changpeng added.
This is not the first time Buffett has publicly voiced his criticism against Bitcoin and cryptocurrencies in general. In mid-November, he said “the idea that Bitcoin has some intrinsic value is a joke.”