[2017-10-27] Warren Buffett: Bitcoin is a bubble, as it doesn’t produce value

[Irvinn]

If you understand, our gold does not give us value. The gold bullion is valuable in that there is very little gold like this on the planet. Bitcoin in this regard also has a resemblance to gold, since it is limited to 21 million. So why is gold not a bubble, and bitcoin is considered a bubble? I do not see much difference.

[pixie85]

When asked about Bitcoin he switched to talking about ICOs. Sure many of them are scams or things that don't bring anything new to the table. Bitcoin is different. It's the most well known, used, accepted and regulated cryptocurrency in the world. To me it's a very important factor when it comes to investments. Warren is too old to know anything about it.

[Domenc]

Everyone got their personal point of view and one should respect that, you can't stop anyone from giving their personal views but that does not mean it needs to true. Warren Buffett is a successful businessman but does not understand the potential of Bitcoin and cryptocurrency. Lately the recent scams held against ICO have put Bitcoin in bad limelight due to which Bitcoin is seen as a dangerous risking asset. But Warren should see the graphs and can clearly know how Bitcoin turns out to be best investment and asset at this time.

[LyQaN]

Does fiat itself produces any value?
No

What is Bitcoin?
 It is a digital currency so what kind of value creation from Bitcoin(currency) they want. Price went from less than a cent to $5800. Value of a currency depends upon trust. People are indeed trusting it. People are buying houses, cars, apartments and what not. In future we will see more bitcoin application, then why would it be a bubble. Even gold is valued more than its intrinsic value or industrial application. Does it collapse? No. Bitcoin is enough a valuable currency that have potential to grow with increasing utility.

It's not a bubble.

[cr1776]

WB said years (decades) ago he won’t invest in things he doesn’t understand.  Which was why tech investments are rare for him.  And that is smart.  If you don’t understand something, it is best to stay away.

And this is another example of something he doesn’t understand and won’t invest in. He will comment on it though and show his lack of understanding. 

He didn’t like bitcoin in March of 2014 either, calling it a ‘mirage’, iirc.

The problem is that in reality nothing has intrinsic value unless there is someone who wants it. On a planet with no life, water, gold, silver, oil, oxygen, dollars, euros, and bitcoin etc have no value.  The difference between bitcoin and fiat is like that of gold, it is limited (although finding gold on the moon or asteroids would change that).  And like gold or silver, bitcoin has value because it is useful and because other people believe in its value proposition.

[asy7]

So another one richman who is saying bad things about bitcoin, i'm 100% sure that he is buying bitcoins on the shadows like his "friends" JPmorgan did some weeks ago...

Is there something better for a guy like this than the bitcoin market if he want to make money?, all those guys are saying one thing and doing the opposite mostly of the times...

I agree with tis point of view. They are deffinitely have bitcoins, but don`t want people make money on it.

[asy7]

Does fiat itself produces any value?
No

What is Bitcoin?
 It is a digital currency so what kind of value creation from Bitcoin(currency) they want. Price went from less than a cent to $5800. Value of a currency depends upon trust. People are indeed trusting it. People are buying houses, cars, apartments and what not. In future we will see more bitcoin application, then why would it be a bubble. Even gold is valued more than its intrinsic value or industrial application. Does it collapse? No. Bitcoin is enough a valuable currency that have potential to grow with increasing utility.

It's not a bubble.

But I still don`t understand if it`so easy to explain, why Warren Buffet say an opposite things.

[rmilly]

One thing I don't agree with Buffett on is this. But honestly, i wouldn't be surprised if he pulled what JP morgan did where he talks shit and then buys a ton.

[8270thNinja]

How to be an idiot without even trying hard:

Warren Buffett, CEO of Berkshire Hathaway and once the richest man on the planet, has lately met with students in Nebraska at a Q&A session. Among other issues mentioned at this session was Bitcoin – and it’s interesting to know what one of the most powerful market figures of the word thinks about this cryptocurrency.

According to MarketWatch, Buffett stated that Bitcoin is not a value-producing asset and there is no telling how far its price would go. It is “a real bubble in that sort of thing”, Mr. Buffett concluded. There is a completely unjustified hype around initial coin offerings, the entrepreneur believes, and described this as a typical market sentiment when “people get excited from big price movements, and Wall Street accommodates”.

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Kidding aside, Bitcoin has been called a bubble for almost years and it's still alive and it's price is still pumping. This man is the likes of Dimon. What a bunch of  "I am a famous person on Investing Field that's why i know all and i can say the Bitcoin is a trash" People.

[bubblebit]

This is the proof that not all CEO are great leaders and most of them are puppets of the institutions they belong. Warren and Jamie is the pawns in this war against bitcoin and the fiat enthusiasts. It is a war they keep on starting but the community and bitcoin keep on increasing, how ironic is that.

Cryptocurrency will ignored this kind of statements that doesn’t really matters because the one doing it isn’t as influential as Bill Gates who believes in bitcoin. That’s the naked reality of all. Bubble is overestimate it’s like a balloon and a big one that go up to the moon. # Sarcasm.

[CryptoBry]

If you understand, our gold does not give us value. The gold bullion is valuable in that there is very little gold like this on the planet. Bitcoin in this regard also has a resemblance to gold, since it is limited to 21 million. So why is gold not a bubble, and bitcoin is considered a bubble? I do not see much difference.

The bottomline here is actually acceptance. When people are accepting gold as really valuable for whatever reasons then it is valuable. Now, the same thing can be said with Bitcoin...as long as there are people who are accepting it as valuable then it is valuable otherwise it would just fall in the wayside and die a natural death just like what we are seeing with so many different brands of products that are not already in the market. It is as simple as that.

[cybersofts]

Maybe Warren is right, Bitcoin can be a bubble, but it helps to build new financial system for new generations. It already helps a lot of young entrepreneurs get rich, they are free from hard work 9 to 5, and are able to put their mind and ideas in something important projects for humanity, like Elon Musk did.

I don't feel like we've hit the real bubble yet. I agree on the fact that this year has been a crazy right but there's still a lot of ground to cover. Bitcoin will keep amazing people. That's for sure.

LOL! Warren Buffet is an old folk with the knowledge and understanding of old stock trading.
I think Mr. Buffet clearly don't understand how the cryptocurrency ecosystem works, today the market is up and tomorrow the market down.
Lots of very educated and highly experienced people with trading background called bitcoin a bubble, though! But bitcoin continue to prove them wrong because bitcoin is setting new all-time high record nearly every 2 months. I think whoever thinks bitcoin is a bubble - side himself with the old folks that doesn't believe in bitcoin, that is why they don't to embrace it. Bitcoin is a revolution created by the youth, so never mind what old people said about, they'll surely hate it because it's something they don't really understand and you know how people treated something they don't understand

[Jating]

Maybe Warren is right, Bitcoin can be a bubble, but it helps to build new financial system for new generations. It already helps a lot of young entrepreneurs get rich, they are free from hard work 9 to 5, and are able to put their mind and ideas in something important projects for humanity, like Elon Musk did.

I don't feel like we've hit the real bubble yet. I agree on the fact that this year has been a crazy right but there's still a lot of ground to cover. Bitcoin will keep amazing people. That's for sure.

LOL! Warren Buffet is an old folk with the knowledge and understanding of old stock trading.
I think Mr. Buffet clearly don't understand how the cryptocurrency ecosystem works, today the market is up and tomorrow the market down.
Lots of very educated and highly experienced people with trading background called bitcoin a bubble, though! But bitcoin continue to prove them wrong because bitcoin is setting new all-time high record nearly every 2 months. I think whoever thinks bitcoin is a bubble - side himself with the old folks that doesn't believe in bitcoin, that is why they don't to embrace it. Bitcoin is a revolution created by the youth, so never mind what old people said about, they'll surely hate it because it's something they don't really understand and you know how people treated something they don't understand

It just shows that bitcoin is not for everyone, not even with the likes of Warren Buffet who is very much successful financial trader. I guess he doesn't want to put his money, although he has a lot, so something that he can't really understand and figure how the price is going up without backup from a government or SEC. It's too much for the old man. lol. I hope he made the right decision though, maybe in a few years he will change his tune to bitcoin. That would be really epic.

[CyberKuro]

I think it's funny as warren buffet have invested in bitcoin, or it just a wrong information.
However, he's maybe right about initial coin offerings, but not all of could be stated as a completely unjustified hype due to some project really need crowfunding and develop in a good way so far, as long as it has product, real usability, and profitable for investors in the future.
Bitcoin is a bubble, maybe he's rifght about it, but it is a bubble which its value keep growing and more likely never pop. Bitcoin is a better monetary system compare to banks with all of their high interest to extract money from their customers.

[SixOfFive]

This time even Buffett's statement about BTC was unable to pull down BTC pricing. It proves that now days Users likely to have a rigid trust on BTC. Market cap of BTC is growing very fast that proves that people allaround the globe is showing their interest in BTC and want to invest in it.
But definitely i agree with him regarding of his ICO review statement. Most of the ICO's are scams.

[veleten]

if you read the article,Buffet was much less hostile than presented
he is a big time investor,a rich guy who made fortune being a trendsetter
so his opinion must be worth something,also unlike Dimon he doesn't make attacks on bitcoin
merely stating the obvious-it doesn't produce value i.e. is not an asset in his eyes
the thing is that nothing has value unless there is a demand for it
in a world where gold is considered nothing and coca cola caps are used as money they have value because people have demand for it and agreed to use it
as a tender,hence bitcoin has as much value as there is demand for it

but we all must thank him for putting bitcoin into perspective,even him mentioning it works for adoption and price rise