Bitcoin price and the prices of other cryptocurrencies jolted in opposite directions today because of a Warren Buffet interview. The interview took place on CNBC – where money news teams recently had their hands on the pedal earlier this week as well. This same network released an absurd video on how to purchase Ripple on Poloniex as well as a series of tone deaf statements about how “big” Ripple was compared to Bitcoin earlier this week.
The phone interview with CNBC’s “Squawk Box” this morning took in Warren Buffet’s “right-hand man” Charlie Munger as well as Warren Buffet himself. Munger is vice chairman of Berkshire Hathaway, the conglomerate of cash monster companies controlled by Warren Buffet. Both Buffet and Munger had some opinions to share about the recent rise of public interest in Bitcoin over the past year.
“It sounds vaguely modern. And I’m sure the computer science involved is difficult and interesting” – C. Munger
CNBC’s Rebecca Quick asked “If venture capital was a place where you potentially see bubbles, and Bitcoin?” Munger replied, “well Bitcoin and the other cryptocurrencies are all bubbles.” CNBC’s Quick replied, “what tells you that, I mean I’m just thinking of the Millennials, the young investors who get so excited about something like this, what would you tell them, what would your message be?”
“Well, they’re excited because things are going up at the moment, and it sounds vaguely modern. And I’m sure the computer science involved is difficult and interesting,” said Munger. “So you can understand where they get inter… excited. But I’m not excited.”
“My [unintelligible] is to just hold my nose and go on,” said Munger. “And go on to somewhere else.”
Meanwhile Buffet suggested that “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. 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.”
“Why in the world should I take a long or short position in something I don’t know anything about?” – W. Buffet
Buffet also noted that he doesn’t have any interest in Bitcoin or any other cryptocurrency. “We don’t own any, we’re not short any, we’ll never have a position in them,” said Buffet. “I get into enough trouble with things I think I know something about, Why in the world should I take a long or short position in something I don’t know anything about?”
He’s right, of course. One should never put cash into an asset or project they know nothing about. On the other hand, growing knowledgeable about bitcoin, cryptocurrencies, and blockchain first – that’s not an option Buffet spoke about.
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