by: Jayson Derrick Benzinga Staff Writer
Bitcoin and cryptocurrency-mania is spreading rapidly across Wall Street and Main Street, but the legendary Warren Buffett isn't buying into the hype one bit.
What You Need To Know
Buffett said back in 2014 that bitcoin is a "mirage" and his views hasn't changed. In an interview with CNBC's Becky Quick Wednesday, Buffett said that for the most part this cryptocurrency run will "come to a bad ending," although when and how this happens remains unclear.
If a product exists in which an investor can buy long-term put options on cryptocurrencies, Buffett would jump on the opportunity to take the opposite side of today's popular trade on "every one of the cryptocurrencies." But he won't outright short a cryptocurrency or assume a short position on the futures market.
By his own admission, Buffett doesn't know much about the cryptocurrency market, but this reason enough to avoid the space altogether.
"I get into enough trouble with things I think I know something about," Buffett explained. "Why in the world should I take a long or short position on something I don't know anything about?"
Why It's Important
Buffett suggests a better investment would be to buy shares in eight to 10 companies that are at the very least a "decent" business. But at the end of the day, bitcoin is a "much more interesting topic" and he jokingly added that his investment firm Berkshire Hathaway Inc.(NYSE: BRK-A) (NYSE: BRK-B) should announce series of new cryptocurrencies.
Buffett isn't long or short cryptocurrencies — and has zero intention to change this philosophy moving forward.
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