Warren Buffett does not recommend to work with cryptocurrencies, because did not know about them

Warren Buffett does not recommend to work with cryptocurrencies, because did not know about them

In an interview with CNBC January 10, the Manager is a billionaire investment group Berkshire Hathaway said that, in his opinion, the story of an innovative financial technology (cryptocurrencies) is not gonna end:

About cryptocurrency, I can confidently say that nothing good is not over. When this happens, or how, I don’t know.

Investment tycoon also said that he has nothing invested in bitcoin or other cryptocurrencies:

If I could buy a five-year rate for each of the cryptocurrencies, I’d be glad to do it, but I would never work in short positions on cryptocurrencies. We do not have any short or long positions and never will.

“Five year rate” is a type of option contract which allows the investors to sell certain securities at a specified price at a specified time. The investor would buy a call option if it believed that the underlying technology will be a success, but Buffett believes that all crypto-currencies will drop in price.

Despite the fact that this point of view Buffett’s can scare off many investors, one must also consider one fact that even he himself admits:

At the time, I had a lot of problems with things I thought I knew almost everything. Why should I take short or long position in something, I don’t know anything?

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