Warren Buffet: Bitcoin is a Very Fascinating Check/Money Order

[acoindr]

OMG

Either Warren Buffet is being intentionally ignorant or he's clueless yet speaking authoritatively about Bitcoin. I'm not sure which is worse.

For those that missed the glaring omission (I know not many in this crowd) Bitcoin is two things. It is both a currency and a payment network for that currency.

If Bitcoin had been invented solely as a way to transfer dollars easily, yes, it would have made a few headlines, but it wouldn't be close to achieving the level of infrastructure, innovative ideas, passionate users and communities springing up around it in such short time. The truth is Bitcoin has intrinsic value not only because it's a better value transfer mechanism but also because it has a known, transparent fixed supply to the currency unit. Hey, Warren: checks and money orders can't do that.

http://www.cnbc.com/id/101494538

[El Dude]

part of his plan , trash something and his sheeple follow and then turn around and buy huge amounts of it .

[krampus]

Warren Buffet is also famously derisive of gold, so I wouldn't get too worked up about it. WB's philosophy is about putting capital to work, something gold is largely incapable of. Inasmuch as Bitcoin has a vague resemblance to gold (people hoarding it as a store of value) I wouldn't expect WB to see its utility. Not yet, anyway.

[acoindr]

Inasmuch as Bitcoin has a vague resemblance to gold (people hoarding it as a store of value) ...

Yes, exactly, and another word for hoarding is of course saving.

WB's philosophy is about putting capital to work ...

Great, but the problem with that is when the capital represents trillions of currency units at some point there simply isn't enough work to continue keeping pace. You'll begin having people working on things nobody really needs or cares about.

I wouldn't expect WB to see its utility. Not yet, anyway.

It's ironic to me, because his great investment insight IMO is boiled down to ability to recognize enduring quality in one form or another. He's able to strip away transitory aspects of a business and focus on core offering, that which can yield long term competitive advantage, and see that before the market does. Couple that with a stock market in a highly inflationary environment and you stand to make billions over time. So in a way his wealth IMO springs from betting on quality set against a devaluing currency, although not overtly, something gold bugs might relate to.

[devphp]

FUD everywhere. Keep calm and carry on, guys and gals.

[krampus]

Yes, exactly, and another word for hoarding is of course saving.

That's too simplistic. Hoarding gold (or Bitcoin) is really about speculation. You're converting fiat into something that you think will be worth more at some point in the future. That's not quite the same as saving, where the fiat at least has an opportunity to work while it is being saved.

Bitcoin is clearly not the same as gold, of course -- even if people are in fact speculating with it and using it as a store of value.

As for whether there's too much capital for the available work, well... I don't think we've reached that point yet.

[acoindr]

Yes, exactly, and another word for hoarding is of course saving.

That's too simplistic. Hoarding gold (or Bitcoin) is really about speculation.

I disagree. I'd argue when you speculate you don't care whether you're buying or selling.

[Gabi]

The internet is a series of tubes, bitcoin is a check

[Bigeyeone]

not surprised at all, Warren Buffet never invested in any tech stocks because as he said he does not understand the technology and he only invests in things he does understand. you cant expect an old guy like him to understand bitcoin, considering he never understood anything else tech related.

and don't forget this guy also owns a bank, wells fargo, so he probably sees bitcoin as competition

[acoindr]

The internet is a series of tubes, bitcoin is a check

Of course. The way it works is somebody at an undisclosed location sits at the end takes a deep breath and... 

[CurbsideProphet]

Buffet investment mantra is "invest in what you know."  He clearly doesn't understand Bitcoin and hence is staying away.  I think at this stage, Bitcoin isn't for a guy like Buffet, maybe his grandkids.