Billionaire investor Warren Buffet says cryptocurrencies are headed for trouble.
“We’ll never have a position in them,” Buffett, chairman and CEO of Berkshire Hathaway, told CNBC’s “Squawk Box” Wednesday morning. “I can say with almost certainty that they will come to a bad ending.”
When bitcoin lost 30 percent of its value on Dec. 22, for example, one post on Reddit read: “I just re-financed my house to get in. I’m freaking out.” Another user offered support to the frantic: “If anyone’s actually depressed or suicidal, come to r/SuicideWatch. We love to listen and talk there.”
It’s the 24-hour cycle of cryptocurrencies that can wear on people’s nerves, said Jim Smigiel, CIO of absolute return strategies at SEI Investments Co.
“With other speculative investments, like private equity and venture capital, you can’t check your phone every five minutes,” he said. With cryptocurrencies, “You’re able to track the minute-by-minute value of it.”