Warren Buffett Warns against bitcoin bubble
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