Bitcoin Forum

The worlds greatest investor doesn't believe in bitcoin. What do you say?

"You can’t value bitcoin because it’s not a value-producing asset...it's a real bubble in that sort of thing.” - Warren Buffet.

Source : https://www.forbes.com/sites/johnwasik/2017/11/06/why-buffett-sees-bitcoin-bubble/#43a11fbe62a8 (https://www.forbes.com/sites/johnwasik/2017/11/06/why-buffett-sees-bitcoin-bubble/#43a11fbe62a8)

Simply because probably every other investor in general has their own preferences on what to invest in.
Also, I really don't want to judge Warren Buffet(as he's probably 10x or more smarter than me), but also probably because he fails to understand how bitcoin works and some of it's important technical aspects that makes bitcoin a really valuable asset. This is usually common when talking to the older crowd that doesn't know much about computers in general, even if they're really knowledgeable or even experts in certain fields.

Buffet's strategy is based on looking for companies undervalued on fundamentals and buying up when low/cheap.  No matter what your view on the future of bitcoin and crypto, there are little to no fundamentals - they are not businesses* they have no assets, no cash flow, no products etc.  You could ask why doesn't Warren Buffet invest in Yen, gold, or wheat futures.

He's dead right that there is nothing to value, if you want to argue against that you need to first acknowledge bitcoin is not a currency.

(*actually thats arguable, many ICO are looking very much like equity offering in disguise)

Warren Buffet is not a God, he is only good at the stock market, and I'm sure he doesn't have to know bit more about some of the legendary members of our forum. And he also often has examples of investment failures, we do what we do or insist on their own judgment.

first of all, how do you know he has not invested in bitcoin? are you inside his pocket that you know where every single dollar of his is going to?

additionally, people like Warren Buffet doesn't really need bitcoin. it actually is too small for them to even look at it twice. you see bitcoin rise and think it is big but in their eyes it is tiny!
 
in fact Buffet is the major shareholder in one of the world's biggest financial services with the revenue of $210 billion. and his shares broke $300,000 per share yesterday! you think he cares about tiny bitcoin that he can not own majority of? LOL

Warren Buffet is notorious for going after traditional industries and not investing in anything internet related because he doesn't understand it. Someone who doesn't understand the internet is unable to understand bitcoin as well.

First of all, he's stick to his old principles to buy just what he fully understands and to invest in something safe and predictable. So he simply doesn't understand Bitcoin because he can barely turn on a computer; he didn't even invest in 'old' tech companies like Microsoft or Google. He prefer to choose predictable investments like insurance or coca cola. He's quite old too so he maybe doesn't have the energy and the brain to learn new stuff. Maybe he may be a bit lazy as well.
Bitcoin is not predictable because of its violent volatility.

Second, he has big interests in Bitcoin competitors, such as banks and governments bonds. Since Bitcoin could have the power to destroy both governments and banks, he just chose his side.

Buffett doesn't care, and this response hit it right on the spot. Why should he? It's too much risk and the money he's making is killer regardless. Billionaires will be billionaires  ;D

I'd say I don't believe that NEM/XEM will make it, but I own 10k coins (at around 50 cents each) anyway since it's peanuts just in case.      I'd bet that somewhere in his organization (with his money being handled) that there are those with discretionary funds who are playing (or researching) btc in the same way in much larger quantities (likely in the hundreds of millions of dollars).   

What do you say? I would like to get your opinion on this.

I think people put too much weight on the opinion of other investors (no matter how successful they've been). Nobody can take away from the investment achievements Buffet has made over his lifetime, and I'd still consider him one of the greatest entrepreneurs of all time, but that doesn't mean he's right about everything. I'm sure Buffet has missed out on many opportunities as do all other investors. I'm sure he's lost millions on certain ventures and I can tell you he's obviously lost tens of millions by not investing in bitcoin as well. I'm not even going to claim that his opinion is wrong here because only time will tell on that front, but I think his thinking is a little outdated on this and he's a bit of a dinosaur these days when it comes to investing (the guy doesn't even own a mobile phone so I'm not sure how he could wrap his head around the potential of the bitcoin and blockchain technology). Could bitcoin be a giant bubble? Of course it could. Will it? I don't know... I really hope not, but even if it was he still could have made millions if not billions on it in the meantime. Just look at the Winklevii twins and how much money they made by having the balls and intelligence to buy into what they see as both a revolutionary idea and the huge potential it has as an investment... and they weren't wrong. They're now billionaires all from an 11 or so million dollar investment I believe. So what do I say to Buffet? Only time will tell but I'm sticking with bitcoin at least for the time being and he can stick to buying stocks in whatever companies he does but there's not really much difference between the two and even if bitcoin does turn out to be a bubble that doesn't mean you could have profited in the millions from it in the process.

Well he did say that he never invest into something that he doesn't understand so it's not weird that he isn't into bitcoin. It's his principle and we can force him to change that because we believe bitcoin is the future. Bitcoin is going to be big even without Warren buffet.

I think He's not too greedy to take advantage in every Field, including Cryptocurrency Fields. And I think He has enough with the investment he has today. Therefore I think that He is not one who wants to always take advantage of a Cryptocurrency trend.

He is a value investor looking for under priced assets that yield a return on equity which is favourable. His way of valuing businesses and assets which lead him to value 1 bitcoin at $0. It has no inherent value and it pure speculation. it is also the reason why he has never and will never hold any gold.

I think his vision has not kept pace with the development of The Times. In the future, he will regret that he did not invest in the blockchain and invest in bitcoin. Many institutions have changed their views on bitcoin.

His vision?  He's an investment strategist, not a futurologist. I'm sure the billionaire has no financial regrets.   :D

No, Mate. I'm have not been inside his pocket. He implies so as quoted by Forbes. May be its too small for him but I'm asking if he is right in his judgement of bitcoin as a bubble.

Even a genius man can do mistakes,, what more warren buffet?. Humans are prone to miscalculation if the matter tackles emotional attachment and personal principles.. Even with his vast experience in investment and as an expert in that field,, he is not open~minded to an orthodox or unfamiliar technology that happens instantly without proper marketing or advertising from mainstream..

He probably didn't have the luxury of time to learn about Bitcoin and how it works. That causes someone to misunderstand and be afraid to invest.

Well, I doubt that he understood Bitcoin as well since if he did, he would have already invested even just a portion of his holdings.

Probably busy with other stuff? And you're right. If he only knew the potential that Bitcoin had. Well, some opportunities are not meant for everyone.

Because Warren Buffet is famous for pursuing traditional industry and not investing in anything related to the internet because he does not understand it. Someone who does not understand the internet also can not understand about bitcoin. because the internet is the part to get bitcoin, so the Warren buffet did not invest in bitcoin.

Look, I think you'll find that many investors are skeptical of these new types of investments, and that they stick to traditional assets, such as shares and whatnot. Warren Buffet isn't the only well known investor who doesn't believe in Cryptocurrencies, just look at Jamie Dimon (CEO of JPMorgan) and all the news articles about him and how he calls it stupid or whatever.

I don't think we need to worry or care at all about what Warren Buffet or whoever thinks, just look at how well Bitcoin and other Cryptocurrencies are doing - and they will continue to do well even with the continued skepticism.

There are lot of reasons why he doesnt want to invest on bitcoin, such as :
1. He doesnt like this kind of investment and prefer other kind of investment such as offline investment ( other assets like gold, land, or property)
2. Maybe he and his business consultant doesnt follow and fail to comprehend the bitcoin technology, that is why he can make that statement.
3. He thinks he is already late to invest on bitcoin.
That is some reasons i can think of, but whatever he thinks about bitcoin, i hope it wont affect bitcoin at all, and wont affect all of us.

He has too much money and maybe he sees in bitcoin his competitor or simply does not understand how to make money to buy coins. On the contrary, it is much better to invest in bitcoin than in stocks.

Warren Buffet doesn't know what he is talking about. First of all, he trades on the stock exchange and that is a mirage in itself.

You never know he might have hold a handsome amount of BTC for himself.
Or he is defaming crypto-market coz he don't want investors to shift from tradition stock market to crypto-market.

His company already has its own form. People who already succeed in their company doesn’t want to take the risk. Remember we are people want financial freedom, but hardly in other ways.

I have a question to you bro. Where did you get the information that warren buffet didn't invest into bitcoin. Since Warren Buffet is one of the popular investors in the entire world now. He has his own opinion and speculation about in bitcoin. And all of us here in terms of business had their own choice to express our understanding about in one thing like in bitcoin.

As a successful businesman, he wouldn't want to take part in high risks investment like bitcoin. Many well known economist says that bitcoin is a bubble and that it shows the signs of a bubble like the tulip bubble. And for Warren Buffet this is not a good sign to invest in and gamble his money in where he can't see wether it will be a success or failure in the future. These big investors are prudent and they don't want to gamble their money in high risks investment.

Buffet knows a lot in this investing things, he is smarter than me, i think that's his opinion also. We can't argue with that thing. I think he is just learning how bitcoin works. A lot of people also thinks that bitcoin is a scam.

That is a particularly for investors maybe he can supply his need by his own investment thats why he cannot invest to this butcoin but. We cannot ensure that because some news is fake.

Warren Buffet did nt invest in IT shares did IT industry stopped because Warren Buffet didn't invest. Later Warren buffet regrated missing Oracle and other IT company shares