There has been much talk about the new form of currency called cryptocurrencies, and with good reason because this currency seems to be the new investing bubble. With Bitcoin exploding in worth, there is a lot of talk about what exactly is going to become of this interesting currency and where the future is headed for it. What is most interesting is where the godfather of investing Warren Buffett stands on this currency, because unlike many other investments that he is standing firm behind such as the American banks he is not at all fond of bitcoin or other cryptocurrencies.
In a recent interview with CNBC Warren Buffett warned that the cryptocurrencies are certainly not going to end well and that the bubble will burst soon enough. Warren Buffett admitted that he doesn’t really know anything about the new craze of cryptocurrencies, and this is why he wouldn’t even be willing to take a short position in the Bitcoin craze. With Warrens position etched in stone it could be a factual statement that the bitcoin craze is going to bust, and with fifty years of experience in the investment world, it’s easy to see why it would be wise to heed Warren Buffett’s words.
Remember that Warren is a value investor, and he has historically invested in companies that have been around for quite a while. Bitcoin is more or less a day traders sport, and similar to the dot-com bubble which ended badly for many silicon valley companies. It is true that this craze is also very similar to the app craze that swept the nation when the original iPhone was released, with companies like Zynga getting huge amounts of venture capital funding only to flop when introduced to the stock market. The cryptocurrencies will have some proving to do if they wish to attract veteran investors like Warren Buffett.