Buffett’s bold call on cryptocurrencies
Crux note: Yesterday, we shared some alarming signs of a bubble in the cryptocurrency market.
Today, two of the smartest investors in the world of finance, Warren Buffett and Jeffrey Gundlach, are sharing their skepticism that “crypto-mania” is here to stay.
In our view, cryptocurrencies are likely headed for a major crash one day… maybe soon. Many folks don’t realize it, but bitcoin has already crashed by 80% or more FIVE times over the past few years.
But blockchain, the underlying technology of cryptocurrencies like bitcoin, is likely to change the world as we know it… much like the internet did in the late 90s.
According Jeff Brown, former Silicon Valley exec and editor of the excellent Near Future Report, the big money is betting on blockchain in a much safer way. And he’s uncovered three ways to profit safely from the blockchain explosion without ever downloading a digital wallet or logging onto a cryptocurrency exchange.
Jeff explains everything you need to know right here.
Billionaire investor Warren Buffett told CNBC on Wednesday the recent craze over bitcoin and other cryptocurrencies won’t end well.
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending,” the chairman and CEO of Berkshire Hathaway said.
“When it happens or how or anything else, I don’t know,” he added in an interview on CNBC’s “Squawk Box” from Omaha, Nebraska. “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.”
Also on the show, Buffett’s right-hand man, Charlie Munger, also blasted frothiness in bitcoin — and in venture capital funding.
Earlier Wednesday, the Omaha-based conglomerate announced the appointment of two new vice chairs. Gregory Abel, 55, will be vice chair of non-insurance businesses. Ajit Jain, 66, will be vice chair of insurance operations.
Buffett said he would not take a short position on bitcoin futures.
“We don’t own any, we’re not short any, we’ll never have a position in them,” he said.