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ICO News: Warren Buffett Weighs in on Upcoming ICOs

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on Oct 27, 2017
Updated: Sep 14, 2023
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There is perhaps no other investor whose style is emulated more than billionaire investor Warren Buffett. He started investing at a young age and has targeted companies whose business model he understands ever since, not the least of which has been Wrigley though he recently sold his position. The point is it should come as no surprise then that he is not aboard the cryptocurrency train, and now it’s official. He believes that many of the upcoming ICOs will “end badly” and says it’s the big price movements that are driving the interest, according to a story in MarketWatch.

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Buffett said: “You can’t value bitcoin because it’s not a value-producing asset.” The price could continue to climb with no apparent ceiling in site but Buffett’s calling it a “real bubble.” He’s not the only one who has made this argument, the other side of which is that central banks can print fiat money whenever they want to.

Another reason why it’s not surprising that Buffett isn’t rushing into bitcoin is that he has never been a fan of the technology industry. Upcoming ICOs are comprised of tech startups on the blockchain, which is a distributed ledger technology. Buffett has reneged on that a bit with investments in Apple and IBM in the past couple of years, but even IBM has exposure to the blockchain.

The Warren Buffett of Cryptocurrencies

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While Buffett’s warning on upcoming ICOs and cryptocurrencies is interesting, it underscores a bigger point. He was only 11 years old when he made his first investment and it was into a bank stock. His tenacity, patience and willingness to hold has shaped Buffett into the success he is today.

Perhaps in today’s young generation the Warren Buffett of cryptocurrencies is just getting started. Perhaps he or she own their first digital coin such as bitcoin, Ripple or an upcoming ICO. They’re going to have to endure their share of volatility before one day they too could have an entire portfolio or holding company with other businesses that are startups today.

Warren Buffett is a believer in corporate America and the economy. But even he had to learn volatility at a young age. Someone out there who is just coming of age understands the blockchain technology and can spot upcoming ICOs the way that Buffett does value investing and stocks. Buffett got started by reading Benjamin Graham’s “The Intelligent Investor.” Perhaps the Buffett of cryptocurrencies has a bitcoin mining operation in their home and are generating a profit already.    

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