Billionaire investor Warren Buffett says cryptocurrencies are headed for disaster. Buffett, who is the chairman and CEO of investment house Berkshire Hathaway, said that cryptocurrencies such as Bitcoin “will come to a bad ending.” Buffett, who has a net worth of over $84 billion appeared on CNBC‘s Squawk Box on Wednesday where he issued his dire predictions on cryptocurrency.
“We don’t own any, we’re not short any, we’ll never have a position in them,” Buffett said. “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.” The billionaire investor known around the world for his incredible moneymaking skills said that the price of cryptocurrencies would be declining over the next five years. The 87-year-old, who is nicknamed the Oracle of Omaha, did concede that he did not know a lot about Bitcoin futures though.
Charlie Munger, who is Buffett’s right-hand man at Berkshire Hathaway, was also very skeptical of cryptocurrencies and said it was a bubble. During a telephone interview with CNBC’s Squawk Box on Wednesday, Berkshire Hathaway vice chairman Munger was asked if Bitcoin was a bubble. “Yeah sure [on bitcoin] and venture capital, too,” Munger replied. “There are always bubbles … that are going to end badly.”
After surging as much as 1,900% last year, Bitcoin busted through the $20,000 mark on Dec. 17, but then the most popular cryptocurrency suffered a massive correction and the price dropped to $12,000, and today the price is just under $15,000. Last week, Ripple plunged nearly 13% and Bitcoin lost 8% of its value.
Also on Wednesday morning, Buffett announced the future of Berkshire Hathaway Inc. by naming his successors. Greg Abel and Ajit Jain were named to Berkshire Hathaway’s board. Abel, who is already the company’s energy division head, was appointed vice chairman of non-insurance business operations. Jain, who runs reinsurance, was made vice chairman of everything insurance-related. With Munger turning 94-years-old last week and Buffett being 87, planning the succession of the company is an important thing to do at this time.