“Cryptocurrencies will come to a bad ending. It essentially will not deliver anything other than supposed scarcity.”The comments came at a time when Bitcoin was actually surging in price, so it was difficult to see how he could think this of cryptocurrencies. In the last month alone, Bitcoin added $2,563.48 to its value, which saw the price increase by nearly 40%! Although these figures are not representative of the figures that we saw at the end of last year, where they were hitting highs of nearly $20,000, it is still a significant increase. But, could Buffett’s comments cause this to dramatically change? There is no denying that he has never been shy about expressing his scepticism for cryptocurrencies. As well as openly admitting that he does not own any cryptocurrencies, he has repeatedly declared that Bitcoin in particular will have a bad ending, even if he did admit that he did not know when this would be;
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending…When it happens or how or anything else, I don’t know.”When referring to his lack of investment in the market, he says;
“I get into enough trouble with things I know something about…Why in the world should I take a long or short position in something I don’t know anything about.”The price volatility is not unusual for Bitcoin, and cryptocurrencies on the whole, but this recent rise could result in a fall that happens just as quickly.