[2019-02-26] Bitcoin Is A Delusion With No Unique Value – Warren Buffett

[ruthbabe]

Bitcoin may have won over millions of people in terms of support, but there are still a few that hold a completely different opinion in regard to its viability as a digital asset. In fact, some of these antagonists are rich people like billionaire Warren Buffett.

During a recent CNBC interview with Becky Quick on Squawk Box, Warren Buffet expressed his heartfelt pessimism about Bitcoin, saying that the cryptocurrency holds no unique value. However, this isn’t the first time Warren Buffet has spoken ill of Bitcoin. He has been quoted as describing the top crypto in unfavorable terms in the past. In 2018, he referred to Bitcoin as rat poison squared.

Sympathetic

Warren Buffet said that he sympathized with the many people who bought in during the peak of December 2017 before the prices went down. During the peak, Bitcoin traded at around $20,000. At the time of Warren’s interview on Monday, the crypto was trading at around $3,700.

It Attracts Charlatans

Warren Buffet wasn’t done with bad-mouthing Bitcoin yet. He went ahead to say that the top crypto is actually just a delusion that mostly attracts charlatans. In his opinion, someone who gets into Wall Street can make money as opposed to someone else who goes out to sell yo-yos.

However, the billionaire wasn’t entirely opposed to the whole new technology, especially the blockchain technology. According to him, the blockchain technology is important, but that doesn’t mean that its success should be pegged on cryptocurrencies.

He’s Not Alone

Warren  Buffet isn’t the only business heavy weight to shun cryptocurrencies and Bitcoin in particular. Others like Bill Gates, Rober Shiller, Nouriel Roubini, Howard Marks, Ray Dalio, and even JP Morgan’s Jamie Dimon have come out to bash it.

However, in the case of JP Morgan’s CEO Jamie Dimon, it’s particularly interesting that his bank recently announced the launching of its own cryptocurrency to facilitate cross-border transactions. That said, it’s notable that a majority of the market players with deep pockets have been largely pro-cryptos and particularly bullish about Bitcoin.

Source: ZyCrypto

[Carlton Banks]

Moving $1 trillion equivalent last year is not a delusion


Curious that Buffet would make these comments at a time when Berkshire Hathaway are reporting failures. Sucks to be him right now.

[BitHodler]

I kinda understand him. He likes productive investments, and that's what made him a fortune throughout his career, so what's there to gain from Bitcoin? Everything that's not a productive asset by default gets a shit/trash mark.

He doesn't like gold either for that same reason, so it's not that he's specifically anti Bitcoin. What gets him triggered are all the fools here thinking that because of their investment during a bull market they are an expert or pro now.

On the other hand, one could say that if you don't like something, then just ignore it and don't waste time speaking out about it, because it will make you look like an idiot during the next bull run....

[rodel caling]

On the other hand, one could say that if you don't like something, then just ignore it and don't waste time speaking out about it, because it will make you look like an idiot during the next bull run....
[/quote]


Perfect mate warren buffet tape he mouth if he isn't interesting in bitcoin or crypto in general, I don't understand him. Why he always shout against bitcoin and crying.
I advice for all bitcoin believer and supporters do not listen this man making unsubstantial news came from his big  mouth haha.

[joniboini]

Perfect mate warren buffet tape he mouth if he isn't interesting in bitcoin or crypto in general, I don't understand him. Why he always shout against bitcoin and crying.
I advice for all bitcoin believer and supporters do not listen this man making unsubstantial news came from his big  mouth haha.

Nobody really knows his true intention but if he's honest, then he probably wants to warn people about speculative investment. His intention is not bad (if that's his true intention) but I doubt he understands crypto correctly (or in this case Bitcoin). A lot of people, especially those from classic investment background would probably love to hear his opinion about crypto, which is why he keeps saying/talking about it. But die-hard crypto supporter will, of course, think his opinion is wrong.

[davis196]

If bitcoin gets widely adopted amongst the "brick and mortar" businesses,Buffet will change it's opinion for sure.The problem is that the adoption isn't coming soon.For people like Buffet,bitcoin doesn't have a value,because it doesn't solve a problem,but then why precious metals like gold and silver have value?

[buwaytress]

It's strange but this is the first time - for me at least - that I've seen his quotes tempered against an admission that all his information about Bitcoin and blockchain and how he understands their concepts come from other people (that's in the Squawk Box interview). So he's basically saying his opinions are formed based on second-hand information. Probably explains how and why he also thinks highly of Wall Street.

Meanwhile, he must not have heard of JPMcoin heh. Or has he, having bought a stake in JPM..?

[Kemarit]

It's strange but this is the first time - for me at least - that I've seen his quotes tempered against an admission that all his information about Bitcoin and blockchain and how he understands their concepts come from other people (that's in the Squawk Box interview). So he's basically saying his opinions are formed based on second-hand information. Probably explains how and why he also thinks highly of Wall Street.

Meanwhile, he must not have heard of JPMcoin heh. Or has he, having bought a stake in JPM..?

Funny you mentioned it, because I was also somewhat surprised by him admitting that he based everything on second hand information. This is not the Warren that we all know, we think of him as someone who is really informative of every subject that goes out of his mind. Perhaps Bitcoin or crypto is an exception and now we truly understand the attacks we got from him is not his own opinion but what he had heard from others or from his peers.

[1Referee]

Buffett didn't start about Bitcoin himself, the jerks over at CNBC did and 'forced' him to say something about Bitcoin. If you 'force' me to say something about a certain altcoin I don't care about, I'll absolutely trash it, and that's what Buffett is doing too. Stupid questions yield stupid answers.

CNBC already knows what Buffett's opinion on Bitcoin is, so the only reason they do it again is to sell the mass shitty news coverage.

[Betwrong]

I've watched the whole interview here: https://youtu.be/Pqc56crs56s . And they ask about Bitcoin almost in the end of this arduous, especially for a man of his age, interview.

Shame on CNBC for manipulating such an old man(88) into saying what they want him to say.

According to William Jagust, a neuroscientist at the University of California, Berkeley, adults are also losing dopamine, a critical neurotransmitter (the type of chemical involved in transmitting signals between neurons), at the rate of 5 to 8 percent per decade. “By age 80,” Jagust says, “you’ve lost 40 percent or so of dopamine function. When you think about it, it’s remarkable that old people can do so well.”

And the guy is 88 now! Just think of it. He'd better rest in some Swiss resort after all the good job he's done during his life instead of being tortured by those sharks.

[magneto]

He doesn't like gold either for that same reason, so it's not that he's specifically anti Bitcoin. What gets him triggered are all the fools here thinking that because of their investment during a bull market they are an expert or pro now.

Yep. I've seen his interviews on gold and silver as investments, and he pretty much says the same thing.

He's been into equities pretty much all his investment career and he's done well. Combine that with the fact that it's difficult for him (most likely) to grasp the concept of a cryptocurrency fully, and why it has utility value, perhaps much more than gold and silver given the fact that it's much more convenient to transact with, means that he will likely have a negative opinion on investments that don't produce dividends, or actually have an actual underlying business model.

But I personally disagree with him on that front. Precious metals and cryptocurrencies are all valid investments, because even though they may be speculative in the short term, their long term value is still determined by the utility that they provide which drives demand. Bitcoin isn't a delusion, it's a legit decentralised network that has processed millions of transactions on chain and probably just as much off chain.

[hatshepsut93]

He doesn't like gold either for that same reason, so it's not that he's specifically anti Bitcoin. What gets him triggered are all the fools here thinking that because of their investment during a bull market they are an expert or pro now.

On the other hand, one could say that if you don't like something, then just ignore it and don't waste time speaking out about it, because it will make you look like an idiot during the next bull run....

I too have heard someone saying that Buffet gets extremely annoyed by Bitcoin investors, maybe he is salty that he missed an opportunity to get giant returns himself, or he just angry that retail investors achieve huge performance without knowing all the secrets of his trade? Either way, I expected more cool from a legend investor like him.

[Carlton Banks]

He doesn't like gold either for that same reason, so it's not that he's specifically anti Bitcoin. What gets him triggered are all the fools here thinking that because of their investment during a bull market they are an expert or pro now.

On the other hand, one could say that if you don't like something, then just ignore it and don't waste time speaking out about it, because it will make you look like an idiot during the next bull run....

I too have heard someone saying that Buffet gets extremely annoyed by Bitcoin investors, maybe he is salty that he missed an opportunity to get giant returns himself, or he just angry that retail investors achieve huge performance without knowing all the secrets of his trade? Either way, I expected more cool from a legend investor like him.

No, I think it's more that he understands that fiat disproportionately benefits big market market players like himself. Companies he has stakes in received bailout money in the wake of the 2008 financial crisis, and I expect those same companies as well as his own hedge fund had access to the vast amounts of almost-zero-percent lending that the US central bank has been handing out ever since.

If you were the beneficiary of a bank that prints vast amounts of money, then lends it exclusively to big companies while everyone else carries on using the currency those loans are made out in, you'd naturally be against a competitor currency like bitcoin.

Big companies spending zero-interest dollar loans on asset booms takes away purchasing power from everyone else. Bitcoin gives everyone that type of opportunity, and undermines the credibility of the central bank currencies that create the asset booms in the first place.

[BitHodler]

But I personally disagree with him on that front. Precious metals and cryptocurrencies are all valid investments, because even though they may be speculative in the short term, their long term value is still determined by the utility that they provide which drives demand.

I don't see gold provide that much utility to be honest. If gold was valued based on its utility, it wouldn't be worth 5% of its current value. It's all related to speculation, and the store of value aspect is part of that.

Bitcoin brings more utility to the table than gold does, so based on that we should see it gain more value there, but I doubt it's going to do much--speculation is what makes every asset have value to begin with.

People think that fiat is money, which it technically is, but the far majority of fiat is being used for speculative purposes instead of money, which is also why Bitcoin keeps pumping while people think it failed as currency.