Warren Buffett is Wrong About Bitcoin
The name Warren Buffett has not been associated with Bitcoin too often. The Berkshire Hathaway chairman and CEO, now aged 87, has not been too involved in the world of cryptocurrencies. Yet, despite his non interest, Cryptocurrencies, including Bitcoin, saw some heavy declines following last week’s Berkshire Hathaway annual shareholders meeting.
Following up on his January warning that “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending, ” the Oracle of Omaha said in an interview with CNBC when asked what is Bitcoin‘s future, Warren Buffett said that the cryptocurrency is “probably rat poison squared,”.
As Bitcoin (BTC) has been struggling to around the $8000 – $9000 mark, many will see Buffett’s comments as vindication that Bitcoin is a bubble that will burst. In January, the billionaire investor said:
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending…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.”
Warren Buffett’s Past Mistakes
So is the man that has so many business successes correct? well, the first thing to note is that Buffett is not always right. There has been occasions where the midas touch as deserted him. In the past, Buffett has admitted to making massive wrong investment decisions. IBM, Google, Amazon and Apple are just some of the stocks that he has admitted turning down the opportunity to buy.
Buffett is a Stocks Man, Not Crypto
If there is one thing that Buffett is known for, it is his stock buying. Buffett is not like Soros, or some other well known investment gurus, who have all expressed an interest or invested in cryptocurrencies. Earlier this year, Buffett said:
“I get into enough trouble with things I think I know something about,” he added. “Why in the world should I take a long or short position in something I don’t know anything about.”
So, clearly Mr Buffett, a man that is believed to be worth an incredible $84.4 billion, is not into cryptos. Buffett is on record of being ‘a stocks man’ and has voiced his disapproval of investing into commodities in the past. It’s not that the Berkshire Hathaway chairman and CEO doesn’t understand the cryptocurrency world. Buffett is a smart man, probably a lot smarter than most, even at 87. Buffett has always been a stock buyer and seller, that is ‘his thing. The man is to be commended for excelling in what he does; buying and selling stocks.
In a long and successful career, Buffett is allowed to be wrong on occasions. On cryptocurrencies, this is one of those occassions.