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Title: Warren Buffett and His Expansive Explanation against Bitcoin Post by: serjent05 on May 01, 2022, 08:10:10 PM In a Berkshire Hathaway Annual Shareholder Meeting last Saturday, Warren Buffett gives his most expansive explanation for why he doesn’t believe in bitcoin.[1]
In this video (https://www.cnbc.com/video/2022/04/30/if-you-offered-me-all-the-bitcoin-in-the-world-for-25-i-wouldnat-take-it-says-warren-buffett.html) he tackles and compares Bitcoin to other asset and give emphasis on the returns. Here is the interesting part of his speech on that video: Quote “Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett said. “It’s got a magic to it and people have attached magics to lots of things.” Quote “If you said… for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett said. ”[For] $25 billion I now own 1% of the farmland. [If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check, it’s very simple. Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food. Quote “Assets, to have value, have to deliver something to somebody. And there’s only one currency that’s accepted. You can come up with all kinds of things — we can put up Berkshire coins... but in the end, this is money,” he said, holding up a $20 bill. “And there’s no reason in the world why the United States government… is going to let Berkshire money replace theirs.” Hearing his explanation, I just came to think that even though Buffet is seeing the importance of Bitcoin, without knowing how it works and why it gets its value, he tends to reject it. It is obvious how he repels the idea that Bitcoin had already been used as legal tender across the globe despite many governments not legalizing it as one. He is also down mining other countries saying that the only currency is $US (4:40 timeline of the video). I wonder if he is not born an American, would he say the same thing? In the latter part of the article[1] is kinda interesting Quote “In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three,” Munger said. Actually, I read this as : In my life, I try and avoid things that make me look stupid and evil and bad in comparison to somebody else – and bitcoin does all three,” [1] https://www.cnbc.com/2022/04/30/warren-buffett-gives-his-most-expansive-explanation-for-why-he-doesnt-believe-in-bitcoin.html Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: _act_ on May 01, 2022, 08:29:50 PM I have just broswed Warren Buffett's age, he was born on August 30, 1930. That is 91 years old.
In his days, he used fiat and he was successful. Old people can be fixed to what make them successful, telling upcoming people the old fashion way when there are new means. All I can say is that Warren Buffett is old and got fixated to fiat and old ways. What I actually know is that I can buy $1000 worth of bitcoin, invest it for some months or years which can turn the $1000 to $2000 or more which is the reason some people are buying bitcoin. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Z-tight on May 01, 2022, 08:43:36 PM Warren Buffett is entitled to his opinions, but i just feel he is missing the point that Bitcoin is more of a currency that anything else, from reading the whitepaper i understood that Bitcoin is first of all a currency and every other thing on top is extra, and that is where he gets it wrong when he asks "what can it produce"? I can also ask what can the U.S. dollar produce, it is a medium of exchange, it can be used for buying and selling or as a reserve currency, but what does it produce. Bitcoin too, just that Bitcoin is a different kind of currency and for many reasons like being decentralized is yet to be mainstream, but it is still a currency.
Then as an asset what it produces is returns, returns for users who want to make a conjecture on the future price, more people will be lucky to make that return in the long term and the reason why they will is easy, Bitcoin gets scarce as the years roll on, and the demand will continue to snowball, a scarce asset with a large demand will result in a high price for that asset. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: lionheart78 on May 01, 2022, 09:58:42 PM What I actually know is that I can buy $1000 worth of bitcoin, invest it for some months or years which can turn the $1000 to $2000 or more which is the reason some people are buying bitcoin. And what I actually know is that I can order an item online and pay for them in Bitcoin. This alone can debunk's Buffett idea that Bitcoin has no value. Sometimes a simple approach is way more than an indepth discussion that makes things more complicated. Quote Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food. As if someone will sell him 1 BTC @$25 atm. But that aside, Buffet tackles trading here, the buy and sell stuff. Does he imagine that if no one buys his items, and no one rented his apartment won't yield him anything? We are discussing demand here and at the current time, Bitcoin has demand that also debunked his statement and will continue to debunk his belief. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: palle11 on May 01, 2022, 09:59:58 PM No doubt buffet has been one of the leading critics of bitcoin far back in time. He has called bitcoin a bubble and of course the magic statement is not new. Buffet don't believe making money has to be by staying on the computer and trading or hodling bitcoin long time for profit and this is why he is making such statement. I was thinking he has perhaps changed this way of thinking of bitcoin after bitcoin has survived all the critics and moving into adoption.
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: arwin100 on May 01, 2022, 11:53:50 PM What can you expect for old folks? They are skeptical about changes especially on things which they are gaining to. Although he's really a great investor as he gain huge success for being a risk taker but I think he really don't understand bitcoin well. I guess its good not to think more deeper on those guys who doesn't believe on bitcoin and stay focus to those people who open on new possibilities since there are rich guys are now opening their doors on bitcoins and crypto.
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: o48o on May 02, 2022, 12:05:04 AM In a Berkshire Hathaway Annual Shareholder Meeting last Saturday, Warren Buffett gives his most expansive explanation for why he doesn’t believe in bitcoin... It baffless me why people are listening to old geezer when it comes to new technology. Obvously it will seem like evil ponzi to him, as he doesn't understand what has been invented. Most people didn't see the internet coming when first browsers came. It was too difficult to use without a proper infrastructure in place. Just because Buffet made his own money, doesn't mean he understand what blockchain is solving. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Pomogator on May 02, 2022, 01:21:59 AM What can you expect for old folks? They are skeptical about changes especially on things which they are gaining to. Although he's really a great investor as he gain huge success for being a risk taker but I think he really don't understand bitcoin well. I guess its good not to think more deeper on those guys who doesn't believe on bitcoin and stay focus to those people who open on new possibilities since there are rich guys are now opening their doors on bitcoins and crypto. Of course, his age has already passed. He became very successful in his time through fiat and risky stock trading, he thinks the old way. Now the time has really come when you need to manage to earn your money on things that are given an artificial value, otherwise you will have to be content with insignificant amounts in shares.Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Flexystar on May 02, 2022, 05:10:47 AM That’s terrific. What magic his talking about? Well I am no technical person but I know one thing for sure, we transact, bitcoin gets mined and confirmed on blockchain and embedded forever to gain the data integrity concerns solved. That’s what it is making. Whole lot of electricity goes into it, gets the transactions converted into data/information which is verified publicly.
It’s no magic, it’s technological advancement and it will continue to evolve forever. I think oldie is just good at cash bucks in his pockets rather than virtual coins. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Fortify on May 02, 2022, 05:24:50 AM n a Berkshire Hathaway Annual Shareholder Meeting last Saturday, Warren Buffett gives his most expansive explanation for why he doesn’t believe in bitcoin.[1] In this video (https://www.cnbc.com/video/2022/04/30/if-you-offered-me-all-the-bitcoin-in-the-world-for-25-i-wouldnat-take-it-says-warren-buffett.html) he tackles and compares Bitcoin to other asset and give emphasis on the returns. Hearing his explanation, I just came to think that even though Buffet is seeing the importance of Bitcoin, without knowing how it works and why it gets its value, he tends to reject it. It is obvious how he repels the idea that Bitcoin had already been used as legal tender across the globe despite many governments not legalizing it as one. He is also down mining other countries saying that the only currency is $US (4:40 timeline of the video). I wonder if he is not born an American, would he say the same thing? In the latter part of the article[1] is kinda interesting Quote “In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three,” Munger said. Actually, I read this as : In my life, I try and avoid things that make me look stupid and evil and bad in comparison to somebody else – and bitcoin does all three,” [1] https://www.cnbc.com/2022/04/30/warren-buffett-gives-his-most-expansive-explanation-for-why-he-doesnt-believe-in-bitcoin.html I generally like Warren Buffett but he has made plenty of mistakes in the past which he freely admits. The explanation he gives of it being unproductive is one view but people do exactly the same with holding gold. There is a degree of arrogance involved, but he misses how useful it is to transfer money around the world without involving banks - which are sometimes expensive, difficult for people to access and prone to collapse in some countries. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: mindrust on May 02, 2022, 05:36:31 AM Warren Buffett is entitled to his opinions, but i just feel he is missing the point that Bitcoin is more of a currency that anything else, from reading the whitepaper i understood that Bitcoin is first of all a currency and every other thing on top is extra, and that is where he gets it wrong when he asks "what can it produce"? I can also ask what can the U.S. dollar produce, it is a medium of exchange, it can be used for buying and selling or as a reserve currency, but what does it produce. Bitcoin too, just that Bitcoin is a different kind of currency and for many reasons like being decentralized is yet to be mainstream, but it is still a currency. Then as an asset what it produces is returns, returns for users who want to make a conjecture on the future price, more people will be lucky to make that return in the long term and the reason why they will is easy, Bitcoin gets scarce as the years roll on, and the demand will continue to snowball, a scarce asset with a large demand will result in a high price for that asset. I don’t think there are many people that understand bitcoin. Maybe I too don’t. I’ll still give it a try. Bitcoin isn’t trying to replace the Dollar. It is carrying the dollar. There is a whole world of difference. If it was the otherwise, then we would price things in bitcoins. But no, we still do price things in USD. The whole world do this. Not just the US. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Don Pedro Dinero on May 02, 2022, 05:49:51 AM I have just broswed Warren Buffett's age, he was born on August 30, 1930. That is 91 years old. In his days, he used fiat and he was successful. Old people can be fixed to what make them successful, telling upcoming people the old fashion way when there are new means. All I can say is that Warren Buffett is old and got fixated to fiat and old ways. I agree. First of all, he's been a billionaire for a long time, and he doesn't need bitcoin at all. Besides, he doesn't understand technology very well. It took him many years to buy Apple and he missed out on much of the rise in tech. So it is not surprising what he thinks of bitcoin. We should ask him if he thinks the same about gold, because the same argument he uses against bitcoin can be used with gold. Or works of art such as the Mona Lisa. There are objects that are valuable and that rise in value over time because they are appreciated. In the case of bitcoin, it is appreciated by those of us who know it and more and more because no one can censure it. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: davis196 on May 02, 2022, 05:59:58 AM Warren Buffet's arguments make sense,but Bitcoin isn't a stock or a piece of real estate.
Bitcoin is supposed to compete against FIAT currencies,not against stocks,bonds,farmlands and real estate. Unfortunately,the volatile nature of BTC and the massive price growth in the last few years made a lot of people think that Bitcoin is some kind of magical financial asset,which would bring them 100x profits. This is simply wrong.Bitcoin was created with the sole purpose of being an alternative to the US dollar and the fiat currencies around the world.Unfortunately,this main purpose shifted to "making more money and getting more profits". Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Kakmakr on May 02, 2022, 06:21:27 AM Warren Buffett are one of those people who sees Bitcoin as a "Commodity" or some investment option that he has to compare to other investment options ...and that is where he is wrong. Bitcoin is a "Currency" ......with a Forex option to trade it, if you want to use it as an investment option.
Now.. compare Bitcoin to other currencies and Forex trading and see what the difference is. You cannot receive "rental income" from a $20 bill... can you? It depreciate in value or buying power.... so much so, that the US Dollar has lost more than 80% of it's buying power over several years. (Did that happen to Bitcoin, since 2009???) I guess Munger's last statement is true for Buffett too ==> “In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three,” Munger said. <=== Why does it make him look stupid..... well the answer is simple... He knows nothing about it...but he still pretend to look smart and then says stupid things about it. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: mindrust on May 02, 2022, 06:29:54 AM Warren Buffett are one of those people who sees Bitcoin as a "Commodity" or some investment option that he has to compare to other investment options ...and that is where he is wrong. Bitcoin is a "Currency" ......with a Forex option to trade it, if you want to use it as an investment option. Now.. compare Bitcoin to other currencies and Forex trading and see what the difference is. You cannot receive "rental income" from a $20 bill... can you? It depreciate in value or buying power.... so much so, that the US Dollar has lost more than 80% of it's buying power over several years. (Did that happen to Bitcoin, since 2009???) I guess Munger's last statement is true for Buffett too ==> “In my life, I try and avoid things that are stupid and evil and make me look bad in comparison to somebody else – and bitcoin does all three,” Munger said. <=== Why does it make him look stupid..... well the answer is simple... He knows nothing about it...but he still pretend to look smart and then says stupid things about it. You should re-read your post. He said btc is stupid. He didn’t say it makes him look stupid. He said it makes him look bad. Your post reads like you forgot what you were writing at the end of your post and reached a different conclusion than you should have. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Bttzed03 on May 02, 2022, 07:22:42 AM ~ Quote “Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett said. “It’s got a magic to it and people have attached magics to lots of things.” Quote “If you said… for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett said. ”[For] $25 billion I now own 1% of the farmland. [If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check, it’s very simple. Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food. Quote “Assets, to have value, have to deliver something to somebody. And there’s only one currency that’s accepted. You can come up with all kinds of things — we can put up Berkshire coins... but in the end, this is money,” he said, holding up a $20 bill. “And there’s no reason in the world why the United States government… is going to let Berkshire money replace theirs.” He's a smart man but I don't know why he had to compare bitcoin (currency) to these types of assets. The better comparison would have been a mining farm and I'm sure he's heard of it. If he can have all the mining farms in the United States that solves 1, 2, or 10 blocks per month, would that change his view? He probably would. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Bitstar_coin on May 02, 2022, 12:06:31 PM Now I understand what Buffett problem is regarding btc, he compares btc to apartment and farmland that produce returns base on physical usage but fails to understand that btc also produce such returns but in digital form. Btc help support in the current ongoing war between Russia and Ukraine, he can not ignore that part, and several other benefits for using btc, obviously he doesn't understand btc that's why he makes this type of statement.
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Smartprofit on May 02, 2022, 12:08:58 PM Bitcoin is a value transfer protocol in the virtual space. It is difficult for Warren Buffett to grasp this fact.
He is 91 years old. This is a man of the 20th century. Now is the 21st century. In the 20th century, there was no virtual space and total digitalization of society. In the 20th century, there was no need for Bitcoin, but now there is. In the 20th century, the US dollar was the world's global reserve currency. Now the world is geopolitically fragmented. The world needs a single global reserve digital currency. This is Bitcoin. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Lucius on May 02, 2022, 01:38:51 PM I no longer pay attention to what the WB or some of its associates say about Bitcoin because they have long presented their opinion, which has not changed to this day. What has changed from 2014 to today, why do some journalists persistently provoke WB with questions about Bitcoin? 8 years later we still have the same story, the same man and the same reactions, it’s one incredibly irritating déjà vu...
“Stay away from it. It’s a mirage, basically,” WB does what it knows best, and while markets are in the red he buys in the tens of billions - because he knows that the best time to invest is when there is blood on the streets (I am referring to a statement by Baron Rothschild). Buffett told shareholders Saturday that right after he wrote to them in his annual letter on Feb. 26 that he was having trouble finding anything to buy at attractive prices, Berkshire spent more than $40 billion on stocks over the next three weeks, including one day in early March when he spent $4.6 billion at the peak Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: crwth on May 02, 2022, 01:54:46 PM Thanks for sharing this. So he doesn't want to get into the modern era or space that will power the future. Everything invented now would be helpful and be great with our technology. He is probably too old school to understand it and has a closed mind with adapting. He should grasp that BTC has a finite amount, so it's beneficial.
Maybe he should do something about it, though? Like, just try trading it or something like how he does it? Or is it a long-term plan to sway the market and buy more or something? I wonder if he is not born an American, would he say the same thing? I don't think race is relevant to what he would say or do. It's him that is like that and no other reason for it. So I don't know why race is related to it, though.Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Z-tight on May 02, 2022, 01:59:27 PM Bitcoin isn’t trying to replace the Dollar. It is carrying the dollar. There is a whole world of difference. If it was the otherwise, then we would price things in bitcoins. But no, we still do price things in USD. The whole world do this. Not just the US. Bitcoin cannot replace the Dollar or another currency, it is not even trying to do that because that is not why it was even made, it is a currency too, an alternative one, but different from the traditional kind because it is decentralized. What do you mean by it is carrying the Dollar? Bitcoin is not the only asset that is priced in dollar, the Dollar is a global currency and many assets are priced in the dollar too.Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Rruchi man on May 02, 2022, 02:55:10 PM I have just browsed Warren Buffett's age, he was born on August 30, 1930. That is 91 years old. We shouldn't worry about Old WB who has already enjoyed and had his fair share of life. IMO he has nothing to loose at such an age even if he doesn't buy the bitcoin and crypto Innovation in general.The set of person's i worry for the most are those who have made him their financial role model and take his financial opinions seriously without scrutiny of which is good and not good for them. Truth is, as a result of his doubts about bitcoin and his distrust for the system, many persons will be influenced and share such opinions with him without thinking. We should be careful about the opinions we take regardless of a person's status, do your research so your decision are directly influenced by your own opinions and not the opinion of others. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: m2017 on May 02, 2022, 06:02:12 PM In a Berkshire Hathaway Annual Shareholder Meeting last Saturday, Warren Buffett gives his most expansive explanation for why he doesn’t believe in bitcoin.[1] Well, grandpa doesn't believe in bitcoin and doesn't believe. What's up with that? Did you want to get approval from him? Is your personal awareness that bitcoin is completely new and revolutionary in the world of finance not enough for you?~snip~ People like Warren Buffett are very far from understanding the technical bitcoin possibilities (I am 99.9% sure that he doesn't understand how BTC works.) and the economic potential of BTC due to their age, way of thinking and old habits. I am sure that many on this forum, like me, had no idea about the possibilities and advantages of bitcoin (in the early stages), but when they became aware of this, it radically changed their opinion about BTC. W. Buffett is unable to do this due to the fact that he lived and evolved in a traditional financial system (Wall Street). Leave grandpa Warren alone and don't burden him with questions about bitcoin (he is completely ignorant of the matter). Buffett is not young for a long time and has lost his flexibility of thinking. Therefore, his opinion about BTC can't be changed. For all his authority on Wall Street, his opinions and views on BTC are completely irrelevant and unnecessary to crypto community. Even without him, we are perfectly aware and understand about bitcoin prospects. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: lionheart78 on May 02, 2022, 08:39:50 PM It baffless me why people are listening to old geezer when it comes to new technology. Obvously it will seem like evil ponzi to him, as he doesn't understand what has been invented. Most people didn't see the internet coming when first browsers came. It was too difficult to use without a proper infrastructure in place. Just because Buffet made his own money, doesn't mean he understand what blockchain is solving. Warren Buffett had established his reputation. Many people around the world greatly respect him because of his accomplishment in the financial industry. I also look up to him and there are lots of good insights he shared that often and help people that are in financial trouble. But it does not mean he is correct at all times. People's understanding is very limited and old people are too stubborn to accept new waves of technology. They adopt the saying : Quote if it is not broken don't fix it and with his methods that bring WB success, he believes that it isn't broken. But I think he missed the meaning of "outdated" just like how the era changes and technology evolve and being stuck with his outdated belief, he surely will have difficulty in adopting new waves of innovative ideas and methods that would have been fueled his old methods. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: hatshepsut93 on May 02, 2022, 10:37:14 PM It's true that the US won't allow Bitcoin to become a mainstream currency, and it's true that this fact severely limits how valuable Bitcoin can become, but no country in the world is able to stop ALL people from using Bitcoin, so there will always be some users and some demand. He also completely ignores the store of value use case, so with his logic gold should cost much less, because only a small share of gold is used in industry.
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: CaVO32 on May 02, 2022, 10:42:49 PM It's true that the US won't allow Bitcoin to become a mainstream currency, and it's true that this fact severely limits how valuable Bitcoin can become, but no country in the world is able to stop ALL people from using Bitcoin, so there will always be some users and some demand. He also completely ignores the store of value use case, so with his logic gold should cost much less, because only a small share of gold is used in industry. We can't expect all people to believe the capability of bitcoin or crypto market. Maybe, up until now, he is wondering where does bitcoin value come from? He couldn't see something backing this up so he doesn't believe in it. But for most crypto users, we are relying from the supply and demand concept about its price movement. Crypto users believe that it has future, hence, some are continuously stacking their satoshis. With the growth that we have seen from the past decade, we are not surprised while there are still newcomers in this market. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: tabas on May 02, 2022, 10:50:48 PM He did say rat poison to bitcoin so expect that he'll never change his position towards it. But there's also this theory that just like the other popular investors, they're buying quietly and as they do that, they have to turn the market down by telling negative things about it.
But in theory too, if understanding that bitcoin is a rat poison, you can revert the meaning of it and put it through the fiat and traditional system. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: arwin100 on May 02, 2022, 11:57:18 PM He did say rat poison to bitcoin so expect that he'll never change his position towards it. But there's also this theory that just like the other popular investors, they're buying quietly and as they do that, they have to turn the market down by telling negative things about it. But in theory too, if understanding that bitcoin is a rat poison, you can revert the meaning of it and put it through the fiat and traditional system. What to expect with those people who always think that their statement is always a word of wisdom? Maybe they really do that on the purpose because we know Buffet is a investor who want to try many things just to gain. Also maybe he's just exaggerating things just to create doubts and want bitcoin to dump for them to buy it at much cheapest price. But let see how future work with this old school dude since once they think they are out dated for sure they adopt this in future if they are not into this at the moment. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: jrrsparkles on May 03, 2022, 01:28:27 AM Not every investors have same perspective on a particular things, it is subjective based on their own mindset. He always think that bitcoin is an asset something like a gold or property but in reality its neither a property or gold it is just a simple medium of exchange and don't have any particular value the actual value comes based on the demand and supply.
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: ChiBitCTy on May 03, 2022, 03:01:27 AM Let’s not forgot the biggest tell tale thing that Buffett has said when it comes it bitcoin and cryptocurrency.. “I don’t understand it”. Warren Buffett has admitted to one of the most unintelligent things a human being can do, hate on something without even remotely understanding it. That’s the facts when it comes to Buffett and Bitcoin, so I’m not even taking anything he says in this regard seriously.
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: mindrust on May 03, 2022, 04:14:41 AM Bitcoin isn’t trying to replace the Dollar. It is carrying the dollar. There is a whole world of difference. If it was the otherwise, then we would price things in bitcoins. But no, we still do price things in USD. The whole world do this. Not just the US. Bitcoin cannot replace the Dollar or another currency, it is not even trying to do that because that is not why it was even made, it is a currency too, an alternative one, but different from the traditional kind because it is decentralized. What do you mean by it is carrying the Dollar? Bitcoin is not the only asset that is priced in dollar, the Dollar is a global currency and many assets are priced in the dollar too.What I mean is pretty clear. Btc is decentralized but its usd value fluctuates. On the other hand, usdt is centralized but its value is fixed. When you buy something with btc, what you really pay is the dollar value of that product. Let’s say I bought a $10 domain with my btc. What is the real price of the domain? $10 or 0.000xxx btc? It is $10. The btc amount changes every second but $10 stays same for months. What the merchant wants is the dollar value. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Jawhead999 on May 03, 2022, 04:52:14 AM When I saw a topic about Warren Buffett and Bitcoin, all the topics obviously criticizing or even spreading FUDs about Bitcoin. We all already know he's really doesn't like Bitcoin and didn't even understand what it is, even Bitcoin already hit $1 million and legal in every jurisdictions... I believe he will keep saying Bitcoin is a bubble and never want to buy Bitcoin. However we're don't know what's the behind, perhaps he already bought a lot Bitcoin and never tell anyone.
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: South Park on May 03, 2022, 07:24:38 AM Warren Buffett is entitled to his opinions, but i just feel he is missing the point that Bitcoin is more of a currency that anything else, from reading the whitepaper i understood that Bitcoin is first of all a currency and every other thing on top is extra, and that is where he gets it wrong when he asks "what can it produce"? I can also ask what can the U.S. dollar produce, it is a medium of exchange, it can be used for buying and selling or as a reserve currency, but what does it produce. Bitcoin too, just that Bitcoin is a different kind of currency and for many reasons like being decentralized is yet to be mainstream, but it is still a currency. Warrant Buffett is a great investor and as such his opinion holds a lot of weight among other investors, but he does not get it, in fact he has made some similar statements against gold in the past, for him gold is just a piece of metal and he does not seem to understand that the whole concept of money originated with it and that even today it would be better than the fiat system we have in place, so it does not surprise me at all that he does not get bitcoin at all either.Then as an asset what it produces is returns, returns for users who want to make a conjecture on the future price, more people will be lucky to make that return in the long term and the reason why they will is easy, Bitcoin gets scarce as the years roll on, and the demand will continue to snowball, a scarce asset with a large demand will result in a high price for that asset. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: LoyceV on May 03, 2022, 11:41:51 AM Quote “it doesn’t produce anything,” Buffett said.” Bitcoin is a medium of exchange, like the dollar. But unlike the dollar, it can't be inflated away by a centralized institution. Quote Quote this is money,” he said, holding up a $20 bill It baffless me why people are listening to old geezer when it comes to new technology. They don't even have to be old, people generally seem to confuse billionaires for people who share their interests. The "popularity" of certain billionaires on a certain website with tiny posts makes absolutely no sense too.He became very successful in his time through fiat and risky stock trading That was also the time when a single job was enough to afford a family, house and car. Since then, "capital" has taken a bigger and bigger slice of the pie, and working people get less and less. This is great for billionaires, but terrible for the rest of the country. And it shows again that an old billionaire has completely different interests than you and me.Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: stompix on May 03, 2022, 01:55:22 PM Quote “If you said… for a 1% interest in all the farmland in the United States, pay our group $25 billion, I’ll write you a check this afternoon,” Buffett said. ”[For] $25 billion I now own 1% of the farmland. [If] you offer me 1% of all the apartment houses in the country and you want another $25 billion, I’ll write you a check, it’s very simple. Now if you told me you own all of the bitcoin in the world and you offered it to me for $25 I wouldn’t take it because what would I do with it? I’d have to sell it back to you one way or another. It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food. If we replace Buffet with Saylor and bitcoin with gold everyone would have been cheering on this statement. So, at the risk of being triple-pitchforked, what is wrong with his statement? Can you sell bitcoin at a higher value if there is nobody offering you more money than you paid for? Can you use your bitcoins without giving away ownership to produce yearly returns? As much as some really want to hate everyone criticizing bitcoin, if we look from the currency point of view, the problem is definitely there, BTC acts as the same currency out there, look how some are going down the drain and not because of money printing but because of the choice that people take, swinging from their crappy currency to a more stable one, driving the exchange rate down. The same is happening right now with BTC , there is a trend now when people are seeking $ or euro or whatever rather than BTC , that's why the price goes down because nobody is offering you more, and there is absolutely no guarantee for this tren to reverse, of course, we all hope it will and it should do so but there is no 100% for anything in this world. Quote “it doesn’t produce anything,” Buffett said.” Common, he was talking about investing those $, not keeping them, investing in assets in order to produce something. He clearly states he would write down in a split second a check with $ for something he would deem profitable, he's not defending the $ anywhere. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: ivankoh on May 03, 2022, 02:24:00 PM Quote It isn’t going to do anything. The apartments are going to produce rent and the farms are going to produce food Bitcoin should be the symbol of a store of value or otherwise, after we would see bitcoin loans as something that exists differently from other traditional investment motives. Bitcoin has been a manifesto of financial freedom and value, old traditions need to be replaced, with respect to Buffett, he should see bitcoin's true value not stopping for that. Until, bitcoin will be lent with net interest as a base. Yes,I Wait for that Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Bushdark on May 03, 2022, 02:40:21 PM I am not surprised to see this words from him because he has always been pessimistic about Bitcoin and I don't think anything can make him change his mindset and cryptocurrency in general. He seems not to like Bitcoin because he thinks it is based on magic. Does it mean that one should not make money from magic?
The fact still remains that since we are making money with magic the we love magic even his contention about Bitcoin is not the major fact. The Bitcoin he is accusing is giving us what normal paper money can not give us. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Jody.Drummer on May 03, 2022, 04:17:14 PM Yep, that's his opinion and no problem with that opinion because he is comfortable with the Fiat he has now, he realizes he is old enough to be in bitcoin so he doesn't want to do that because indeed this can be a stupid act for parents who is as old as him lol.
Apart from that it makes me quite happy that at least there are rich people who don't go along here and act like whales and that actually provides more opportunities for bitcoin. There's nothing to argue about, especially with this old man, because he doesn't believe in bitcoin anymore, why should we bother arguing with him? Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: LoyceV on May 03, 2022, 05:28:04 PM So, at the risk of being triple-pitchforked, what is wrong with his statement? This applies to literally anything :)Can you sell bitcoin at a higher value if there is nobody offering you more money than you paid for? Quote Can you use your bitcoins without giving away ownership to produce yearly returns? When measured in purchasing power: kinda :) I can't say the same about dollars or euros, and despite losing value continuously, dollars or euros don't produce yearly returns without giving them away either.Quote Quote “it doesn’t produce anything,” Buffett said.” I like what Silicon Valley (TV-series) (https://www.youtube.com/watch?v=4pWD2ug4kV8&t=140s) has to say on the subject. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: tabas on May 03, 2022, 10:46:18 PM He did say rat poison to bitcoin so expect that he'll never change his position towards it. But there's also this theory that just like the other popular investors, they're buying quietly and as they do that, they have to turn the market down by telling negative things about it. But in theory too, if understanding that bitcoin is a rat poison, you can revert the meaning of it and put it through the fiat and traditional system. What to expect with those people who always think that their statement is always a word of wisdom? Maybe they really do that on the purpose because we know Buffet is a investor who want to try many things just to gain. Also maybe he's just exaggerating things just to create doubts and want bitcoin to dump for them to buy it at much cheapest price. But let see how future work with this old school dude since once they think they are out dated for sure they adopt this in future if they are not into this at the moment. I'm taking it that there's no twist on what he says, he's a hard core traditional investor and he's best at his craft. Maybe he just don't really know bitcoin and cryptos. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: serjent05 on May 03, 2022, 11:05:06 PM Maybe he just don't really know bitcoin and cryptos. Or he had already known it but don't want to admit it . :D Honestly the more people know about stuff the easier for them to attack it since they can make arguments about its possible weaknesses. They can provide sound twisted reasoning on it and can choose words carefully so as not to expose them. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: danadc on May 04, 2022, 04:10:43 AM This is not new by Buffet, in addition the comment of the $ 25 that he affirmed seems to me somewhat derogatory, although he is a person with great intelligence and high financial education, a very good investor by nature, we must Take into account that the years do not pass in vain. When a person reaches a certain level of age, he gives herself that he has a lot of wisdom and that the new is not reliable, for him the reliable is sure.
Trx's CEO in a moment spoke with him and gave him Trx <that for me it made no sense> at a meal he shared with him, he giving his point of view he will never accept that BTC like any cryptocurrency can have a promising future, For him the backed actions, the gold, and everything that meets the safe is what he believes, that he gets with BTC should not be a problem, I see it as advertising, even if it is bad, it is coming out of the mouth of He the word BTC, that is enough because he is already considering it, and I think that is gain. In this life we must learn that not everyone can think of the same or analogous, we cannot control the language of others, while there are opinions with diversity is one of the freedoms we still have. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: yhiaali3 on May 04, 2022, 04:47:18 AM It is good that he describes Bitcoin as having magic, indeed Bitcoin has magic so it enchanted people and attracted them to it, not black magic but the magic of the high features and characteristics of Bitcoin that make it superior to the dollar and any paper currency in the world, a pathetic bourgeois, who will never understand how Bitcoin works and how it holds that value and that magic!!! I expect if he lived in another country that accepts Bitcoin, he would have said something completely different!!!
Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Bitstar_coin on May 04, 2022, 06:02:25 AM It is good that he describes Bitcoin as having magic, indeed Bitcoin has magic so it enchanted people and attracted them to it, not black magic but the magic of the high features and characteristics of Bitcoin that make it superior to the dollar and any paper currency in the world, a pathetic bourgeois, who will never understand how Bitcoin works and how it holds that value and that magic!!! I expect if he lived in another country that accepts Bitcoin, he would have said something completely different!!! Unfortunately the magic in btc is not strong enough to capture Buffett's ancient thoughts and modify them into today's views to understand the core value of btc and it's superiority over his so ever cherished dollar. Even it latter make sense to him, I doubt people like Buffett will publicly want to admit their short comings, he would rather remain stubborn about it all. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: stompix on May 04, 2022, 05:47:11 PM So, at the risk of being triple-pitchforked, what is wrong with his statement? This applies to literally anything :)Can you sell bitcoin at a higher value if there is nobody offering you more money than you paid for? Exactly, from real estate to shares to everything. Nothing can gain value out of thin air, there is no 1.8 trillion sitting in cryptocurrencies or 3 trillion in Apple, every single bill for which coins or shares are bought it's not going to somebody safe it goes in the pocket of the one that sold! Nobody likes this approach because it sounds too much like some scheme not be named but that's the reality for everything, even the 50k BMW you've just bought, it's not worth 50k by default, if nobody gives you more than 20k, that's the value, if nobody wants it the value is scrap metal. If nobody wants your 10$ bill because it has spit on it it's not 10$ it's a dirty piece of paper. I didn't say he's defending the dollar, but he's ignoring the fact that it has the same "problem". You can use dollars to buy other stuff, but you can do the same with Bitcoin. Just not everywhere yet. If that ever happens, I doubt Buffet will be there to see it (considering his age). So it really doesn't matter to him. Every single thing out there has a problem, otherwise, we would be already living in utopia, Bitcoin fixes a lot of stuff but it's not a magical cure for everything else, while it will keep your wealth or income safe it won't do much about other stuff. As for Buffet, he has the right to his opinion, we have the right to our opinion on him, but sometimes I'm really smiling seeing a few users who claim he's an idiot who knows nothing about the economy because he doesn't understand crypto. Just like how every single WOT player would have known way better than Rommel how to fight at El Alamein ;) Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: lixer on May 04, 2022, 06:56:01 PM It is good that he describes Bitcoin as having magic, indeed Bitcoin has magic so it enchanted people and attracted them to it, not black magic but the magic of the high features and characteristics of Bitcoin that make it superior to the dollar and any paper currency in the world, a pathetic bourgeois, who will never understand how Bitcoin works and how it holds that value and that magic!!! I expect if he lived in another country that accepts Bitcoin, he would have said something completely different!!! Unfortunately the magic in btc is not strong enough to capture Buffett's ancient thoughts and modify them into today's views to understand the core value of btc and it's superiority over his so ever cherished dollar. Even it latter make sense to him, I doubt people like Buffett will publicly want to admit their short comings, he would rather remain stubborn about it all.@yhiaali3 if btc has a magic (the good use) then I think there's also black magic or its bad use cases. This is why many are against btc because they can see that btc can be use on wrong doings like money laundering, scams, hacks, and etc. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: tabas on May 04, 2022, 07:45:29 PM Maybe he just don't really know bitcoin and cryptos. Or he had already known it but don't want to admit it . :D Honestly the more people know about stuff the easier for them to attack it since they can make arguments about its possible weaknesses. They can provide sound twisted reasoning on it and can choose words carefully so as not to expose them. That's why he should keep the people on the stock side so that the market cap would remain the same and he's going to take advantage of it since he's one of the whales there. People like him are investors and it's highly unlikely that they don't know what are the major trends in investing. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Oilacris on May 04, 2022, 11:16:00 PM Maybe he just don't really know bitcoin and cryptos. Or he had already known it but don't want to admit it . :D Honestly the more people know about stuff the easier for them to attack it since they can make arguments about its possible weaknesses. They can provide sound twisted reasoning on it and can choose words carefully so as not to expose them. That's why he should keep the people on the stock side so that the market cap would remain the same and he's going to take advantage of it since he's one of the whales there. People like him are investors and it's highly unlikely that they don't know what are the major trends in investing. for these big fellas to be those institutional investors which involved on typical or regular investment that we do have in the past. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: TravelMug on May 05, 2022, 01:01:12 AM Maybe he just don't really know bitcoin and cryptos. Or he had already known it but don't want to admit it . :D Honestly the more people know about stuff the easier for them to attack it since they can make arguments about its possible weaknesses. They can provide sound twisted reasoning on it and can choose words carefully so as not to expose them. I doubt that he doesn't know about bitcoin by now, because he keeps talking about it and has been talking time to speak about it. It's just the question of ignorance on his part, but who can't blame him. He is an old and traditional part and for me he doesn't want to accept chances because he is afraid of it. He has so many excuses against bitcoin that if you look it, doesn't make sense and he was proven wrong many times already, not just with crypto, but will some of his investments in the past. So we should taking everything with a grain a salt although he has made money through investment, his words are not perfect. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Wawa2013 on May 05, 2022, 02:21:03 AM Maybe he just don't really know bitcoin and cryptos. Or he had already known it but don't want to admit it . :D Honestly the more people know about stuff the easier for them to attack it since they can make arguments about its possible weaknesses. They can provide sound twisted reasoning on it and can choose words carefully so as not to expose them. I doubt that he doesn't know about bitcoin by now, because he keeps talking about it and has been talking time to speak about it. It's just the question of ignorance on his part, but who can't blame him. He is an old and traditional part and for me he doesn't want to accept chances because he is afraid of it. He has so many excuses against bitcoin that if you look it, doesn't make sense and he was proven wrong many times already, not just with crypto, but will some of his investments in the past. So we should taking everything with a grain a salt although he has made money through investment, his words are not perfect. With a background as an educated person and a graduate of Columbia University, with a Master of Science degree in economics. I doubt people like that don't understand Bitcoin, this is just a matter of the ego of Warren Buffett who does not want to accept the fact that Bitcoin is a good asset for investment. It's true that we all shouldn't blame Warren Buffett if until now he hated Bitcoin, because there is no compulsion to like Bitcoin. Everyone has their own opinion and decision, so Warren Buffett's decision is his right, we can't force Warren Buffett to support Bitcoin. Because Bitcoin doesn't need Warren Buffett's backing to thrive and be accepted by many people, even now one by one it is starting to prove that what Warren Buffett said about Bitcoin is not all true. Even though Warren Buffett is successful and rich, that doesn't mean everything he says is true, because nobody is perfect, everyone makes mistakes. Most importantly, we as human beings must respect each other's opinions and decisions. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: adaseb on May 05, 2022, 02:23:05 AM I’ve been following his negative speech towards Bitcoin for years. And I don’t know why people expect him to one day wake up and say he loves Bitcoin, it won’t happen.
He has a very strict investment protocol and Bitcoin is just too advanced for him. Same with airlines. He doesn’t like to invest in airlines and last time he did he ended up losing some money by selling too early. With Bitcoin it’s no different. He is just too old to understand how it works. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Darker45 on May 05, 2022, 02:47:18 AM I think it is better we leave Warren alone. Let the old man be. Bitcoin is simply not his cup of tea. He is an old dog who is not bent on learning new tricks anymore. He has his standards which have been proven effective and sufficient. He has made a vast amount of wealth in his lifetime. Despite this, he is probably living a simple yet fun life. He has accomplished what others could only dream of.
I guess the only reason why Warren has to respond against Bitcoin over and over again are those selfish people who are still persistently bugging Warren to put some of his wealth into Bitcoin. And that's apparently for the sake of moving Bitcoin's price up. Why can't they stay still and trust Bitcoin's features? Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: tabas on May 05, 2022, 08:39:19 PM Right, he's a stock guy and that's going to be a big loss to him if he advises people to buy bitcoin. They are not all-knowing in terms of investment and trend but they do specialize when it comes to this which means that learning or making out adjustments wont really be that hard for them compared into those people who doesnt have knowledge or idea about investing.Therefore, we cant really say that they dont know on what they are dealing off.Speaking with stocks investment then its expectedThat's why he should keep the people on the stock side so that the market cap would remain the same and he's going to take advantage of it since he's one of the whales there. People like him are investors and it's highly unlikely that they don't know what are the major trends in investing. for these big fellas to be those institutional investors which involved on typical or regular investment that we do have in the past. But, I'm coming to that point that even if there's someone who's good in explaining to him what bitcoin is, he's having hard time to understand it because it's totally different from the usual investments and stocks that he's in. Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: The Sceptical Chymist on May 05, 2022, 09:28:15 PM People like Warren Buffett are very far from understanding the technical bitcoin possibilities (I am 99.9% sure that he doesn't understand how BTC works.) and the economic potential of BTC due to their age, way of thinking and old habits. I think you're selling W.B. short there, because he's not only a legendary investor, he's an incredibly smart man as well. He probably understands more about bitcoin than you think--and while he might not understand all of the technicalities, he really doesn't have to in order to form an opinion of it.And yes, he's of another age but I'd suggest we not bash the man for not liking bitcoin. To each his own, I say, and Buffett's track record speaks for itself (unlike most crypto investors about which we know very little in terms of their investing success). I guess the only reason why Warren has to respond against Bitcoin over and over again are those selfish people who are still persistently bugging Warren to put some of his wealth into Bitcoin. And that's apparently for the sake of moving Bitcoin's price up. Why can't they stay still and trust Bitcoin's features? Hear, hear (and to the other part of your post I snipped out). Buffett has already made his opinion of bitcoin known, so I'm not sure either why people keep nagging him about it. He's a guy who invests in businesses first and foremost, not currencies. I wouldn't dismiss his view of crypto, but if I held it as gospel truth I wouldn't be on this forum--nor would any of the rest of us either.Title: Re: Warren Buffett and His Expansive Explanation against Bitcoin Post by: Oluwa-btc on May 15, 2022, 07:09:15 AM Sorry too say but he's a recalcitrant billionaire who have refused too keep up with the current trend.
( Is it that he doesn't invest in currencies like gold and silver) He needs too be schooled that Bitcoin ain't no commodity, I know he hasn't gotten to understand that Bitcoin is a store bank as you watch em gain value. I don't even think it's a good one for him, watching your Bitcoin moving from 18,000 to 2000k isn't an easy thing for someone at he's age, as it might cause harm to he's breathing system (health) high level of endurance and tolerance needed to watch all go that! He's got he's funds and mouth what he says substracts nothing from Bitcoin, know what I mean ? Lol |