The chairman and chief executive of Berkshire Hathaway has joined the chorus of voices criticising the digital currency, which endured a rollercoaster ride at the tail end of 2017.
While Munger had the idea to make Abel and Jain vice chairmen, Buffett said on CNBC that managing a large portion of Berkshire would provide valuable experience to his successor.
"In terms of cryptocurrencies, generally, I can say with nearly certainty that they will come to a bad ending", the chairman and CEO of Berkshire Hathaway said. "They both have Berkshire in their blood".
"I get into enough trouble with things I think I know something about", Buffett explained.
"I have to face reality", Munger said. "Berkshire will operate best if its CEOs average well over 10 years at the helm".
Jain, 66, was named vice chair of the insurance operations. Jain joined the Berkshire Hathaway Insurance Group in 1986 and now serves as executive vice president of National Indemnity Company with overall responsibility for leading Berkshire's reinsurance operations.
Buffett said he would not take a short position on bitcoin futures.
In the CNBC interview, Buffett repeated that the board, whose members include Microsoft Corp (MSFT.O) co-founder Bill Gates, can install a new CEO within a day when he steps down, dies or becomes incapacitated. Buffett had refused to name them, but investors who follow Berkshire had long included Jain and Abel on their short lists. He now serves as executive vice president of National Indemnity Co.