2018-05-05 Warren Buffett, Charlie Munger Slam Bitcoin Again, Resort To Elementa

[Crypto_Hot_News]

Warren Buffett, Charlie Munger Slam Bitcoin Again, Resort To Elementary School Insults

Billionaire investor and Berkshire Hathaway’s Chairman and CEO Warren Buffett reiterated his negative stance towards cryptocurrencies at the annual meeting of his company Saturday, May 5. Buffet repeated his idea that cryptocurrencies will come to a “bad ending,” and claimed that Bitcoin (BTC) is "probably rat poison squared," according to CNBC.

In response to a question on Buffet’s view of cryptocurrencies raised by an attendee from Ukraine, the “Oracle Of Omaha” has made yet another anti-crypto statement. According to Buffet, Bitcoin is not a “productive” asset, unlike land or corporate shares. As a result, investors’ demand for it is the only price-determining factor, making digital currency a handy tool for “charlatans,” Buffet said.

The billionaire investor claimed that cryptocurrency community is in for a “bad ending” after the “euphoria wears off.”

Berkshire Hathaway’s Vice Chairman Charlie Munger echoed Buffet’s criticism of cryptocurrency investment, albeit in much harsher terms:

"Someone else is trading turds and you decide I can't be left out."

Earlier in February, Munger called Bitcoin “totally asinine” and argued that people get involved in crypto ”because everybody wants easy money.”

87-year-old Buffet is known for his scepticism towards cryptocurrencies. The billionaire investor has made repeated statements claiming that Bitcoin is neither a currency, nor a way of investing. In October 2017, Buffet claimed that Bitcoin had entered the “bubble territory,” and is “going to implode.”

Some institutional players, on the other hand, are much more enthusiastic about Bitcoin. For example, the banking giant Goldman Sachs has launched a Bitcoin trading operation earlier this week, commenting that Bitcoin “is not a fraud.”

Source: https://cointelegraph.com/news/warren-buffett-charlie-munger-slam-bitcoin-again-resort-to-elementary-school-insults

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[CryptoBry]

Fortunately, we have already heard the stand of these people and the market is not anymore reacting to them negatively. We are already at the phase where for every negative thinker on cryptocurrency there are around 3 or 4 who are appreciating what this new trend can be bringing. While it could not be denied that some players in cryptocurrency are here just for the money and can probably go scam...there are more who are legitimate and are really offering some breathe of fresh air to the market. Just like at the early stage of the internet, there can be some rush and even some confusion but when the dust had settled we know what happened.

[Lucius]

It's amazing to me that the crypto related media follows every word that goes out of WB mouth,and that old grandpa is completely negative towards cryptocurrency and will die in their beliefs.Instead of dealing with some positive topics and writing about real problems,spreading FUD is obviously more lucrative for business.

On the other side there is no mention about the losses of his company in Q1,it is only 1.14$ billion so WB and his buddy Munger instead of solving their own problems are attacking again on BTC.

[Kakmakr]

You know if these "turds" are valued at $1000 in January and then $18 000 in December, then I will shit myself to sell these "turds". While they are badmouthing Crypto currencies, businesses are being built around these technologies and traders are making millions, trading these "turds"

I would rather trade these "turds" than the shit they are trading over at Berkshire Hathaway. That is ONE bubble that are going to burst very soon and they know it. 

[TraderTimm]

Buffett and Munger have an investment strategy that limits their interest in potential stocks/assets to specific criteria.

First, they have to understand the business/technology that they're considering. They have not demonstrated that they have done their homework -- the very quote of "its going to implode" in October of 2017 shows this. He's out of his depth on this new asset, its blatantly obvious.

Look, those fucking guys are nearly 90 -- I don't expect someone that far along to really give two shits about cryptocurrencies, much less know how they work. The only problem is when they open their wrinkle-holes and make noises about it. We get it grandpa twins, streetcar fares used to be a nickel and you could go to the movies for a dime. Drink your fucking milk and go to sleep.

We've got this.

[thefaucetrunner]

It only makes sense for a fundamental value investor like Buffett to not understand Bitcoin. He does not buy growth investments or technologies that have great potential. He buys things with fundamental, practical current value that are underpriced. That is clearly not Bitcoin.

[aso118]

It's amazing to me that the crypto related media follows every word that goes out of WB mouth,and that old grandpa is completely negative towards cryptocurrency and will die in their beliefs.Instead of dealing with some positive topics and writing about real problems,spreading FUD is obviously more lucrative for business.

On the other side there is no mention about the losses of his company in Q1,it is only 1.14$ billion so WB and his buddy Munger instead of solving their own problems are attacking again on BTC.

I don't think that Buffett and Co used cryptocurrencies as a distraction. The loss that Hathway incurred in the first quarter was explained away by accounting changes. His views on Bitcoin were in response to a specific question and we can conclude that his views haven't changed.

[Qartersa]

I have always been expecting this since Buffet is a traditional businessperson. He acquired his riches from the norms- what can we expect? It is obviously normal for him to do away with anything that diminishes further the value of fiat currency where his wealth is greatly focused. And you know what? There is absolutely nothing wrong with it.

What I do not get is its obsession with anything that is directly against Bitcoin. I mean, what is the fuss? Why focus his energy on one side alone? I am now contemplating that this is yet another business strategy.

[imsotiredofmoviereboots]

Those guys are very funny. They don't know that their statements gives more fuel on bitcoin to moon again. Their just like Jamie Dimon that are going to shut up after bitcoin will make another set of all time highs this year.

[Don Pedro Dinero]

It only makes sense for a fundamental value investor like Buffett to not understand Bitcoin. He does not buy growth investments or technologies that have great potential. He buys things with fundamental, practical current value that are underpriced. That is clearly not Bitcoin.

I completely agree with this, but he could not criticize what he doesn’t understand. I suppose he has seen so many easy-money scams in his life that he just thinks bitcoin is one of them. Besides, when he compares buying bitcoin to buying land he is comparing oranges and apples.

[Lucius]

I don't think that Buffett and Co used cryptocurrencies as a distraction. The loss that Hathway incurred in the first quarter was explained away by accounting changes. His views on Bitcoin were in response to a specific question and we can conclude that his views haven't changed.

Loss is loss, no matter how it was made and how it is created.The fact that WB constantly talking negative about BTC speaks for itself,and I do not see what the point is in that, except that he and his buddy Munger want to draw attention from the real problems that are hurting them.They are actually business dinosaurs who are aware that the world is changing,but they do not want to accept it.

[LoyceV]

Ask yourself: if this would be true, why would Warren Buffett (of central banks, or many other high profile institutions) care? Many things emerge and disappear, and nobody bats an eye. But when it comes to Bitcoin, suddenly they all feel the need to keep talking about it!
I can only conclude Bitcoin is going to be very big. And the established rich organisations fear losing their precious inflation money.

[gentlemand]

Why do these people care enough to comment on it? I'm sure they know plenty about markets but nothing about the tech or potential or who's populating these markets. When I don't know enough about something then I keep my gob shut. I'm amazed more people don't do the same.

If it does fail then feel free to crow about it in the aftermath. Any time before that and you're likely to end up looking like a twat.

[veleten]

such a surprise it is not the first time he is leaving negative comments about bitcoin
would be funny if he suddenly changed his stance ,he also called bitcoin "rat poison squared" so what
for a guy who makes money from investments and central bank shenenigans(like simply making money out of nothing aka printing)
anything that is new and "controversial" opens many opportunities for other players to get rich
but saying something and doing something are two different things:we do not know if he or his affiliated structures are secretly investing billions into bitcoins or not