Bitcoin buyers are like rat poison: Warren Buffett
He clarified that if there is a five-year futures market, he could participate in it, but not in the short term.
Investor Warren Buffett said Monday that buyers of bitcoins - which he called "rat poison" - are thriving on the hope that they will find other people who will pay more for them.
After comparing the demand for bitcoins with the tulip fever that Holland lived in the seventeenth century, Buffett, chief executive of conglomerate Berkshire Hathaway Inc, said the mystique behind the cryptocurrency caused its price increase.
"Create a price increase, create more buyers (...) If you do not understand, you get much more excited," Buffett said on CNBC television. "People like to speculate, they like to bet."
Charlie Munger, Buffett's longtime partner and vice president of Berkshire, described bitcoin as "worthless artificial gold" and equated it with Oscar Wilde's definition of fox hunting, calling it "the unspeakable in the search for the inedible." .
Buffett said investors would fare much better if they bet on US stocks, which are also a better option than sovereign bonds at 10 or 30 years. In his opinion, the prices of the shares are high, but not in a bubble.
He said he would prefer Berkshire's cash and equivalents stack to be $ 30 billion instead of $ 108.6 billion at the end of March, but good deals have not emerged.
This is not the first time that Buffett has demonstrated against the cryptocurrency, since earlier this year during an interview on the same television channel, the investor mentioned that, on the subject, his portfolio had no position in bitcoins. , which since December 2017 was trading in the futures market in the United States.
"I already have enough problems with the things that I know something about. Why should I take a long or short term position of something I do not know anything about? "Buffett asked.
"In terms of cryptocurrencies," he added, "I can usually say with almost total certainty that they will have a bad end."
The founder of Berkshire Hathaway clarified, however, that if there was a futures market with a term of five years, he could think about the possibility of participating in it, but "not a penny" in the short term.
GOLDMAN SACHS BETS FOR THE BITCOIN
However, contrary to the main financial institutions of the United States, Goldman Sachs will be launched to the brokerage of products related to bitcoin, thus granting legitimacy to this murky cryptocurrency that generates division in the world of finance.
The American firm, symbol of Wall Street, will carry out in the "next weeks" the first internal transactions related to the virtual currency, according to AFP sources close to the case.
Two weeks ago, the entity hired Justin Schmidt, 38, an ex-operator of the New York hedge fund Seven Eight Capital, which last year began to trade virtual currencies on its own.
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