Warren Buffett Warns against bitcoin bubble

Warren Buffett Warns against bitcoin bubble

Billionaire business mogul Warren Buffett warned bitcoin and other cryptocurrencies are “certain” to end badly.

Mr Buffet said he is unsure when the cryptocurrencies bubble will burst but he is “certain” it will happen.

He said: “I know this. If I could buy long-term puts. 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.

“I think what’s going on will definitely come to a bad ending.”

He said “Who buys a home expecting it to double in value in a year? Who buys an unproven web startup certain that it will disrupt an entire industry in short order?

Think back to the housing bubble and, before that, the dot-com stock bubble. There was a time, early on, when these investments were nearly worthless.

Yet investors pounced on dot-coms and fixer-uppers. They feared missing out on a chance to get rich quickly.

As with dot-coms and real estate, the fuel driving the bitcoin fire is the continual entry of new investors, more and more people motivated by FOMO, fear of missing out.

Bitcoin BTCUSD, +2.54% BTCF8, +1.79%  is a complex idea. Simply put, it’s a virtual currency that is created, owned and traded entirely online in anonymous and unregulated settings. In theory, there is a limited number of these physically non-existent digital “coins,” though that limit hasn’t yet been reached. A few years ago, bitcoins were almost worthless; earlier in December, bitcoin’s valued briefly topped $19,000.”

Ethereum has been said to be the next Bitcoin find out here

 

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