Warren Buffet: "Stay away from Bitcoin"

[QuestionAuthority]

Whenever I want tech advice, I always ask a senior citizen. 

You're obviously not a Ron Paul supporter. lol

[hyunsookmom]

A dinosaur is warning against the meteor impact that will wipe him out? Sure old man, sure we will listen to you.

How much you worth smart Jack?

[gollum]

"Buffett also said he would steer clear of bitcoin. Buffett said the cryptocurrency is an effective payment system, but “so is a check.” The idea that bitcoin has some “intrinsic value is just a joke.”

http://blogs.marketwatch.com/thetell/2014/03/14/warren-buffett-dont-dump-stocks-on-china-or-ukraine-and-stay-away-from-bitcoin/?mod=sfmw

Well... It's too late for some of us to stay away now.

Remember, this is the same guy that said to avoid investing in internet companies.

I agree with Mr Buffett.
Bitcoin should be used as a payment system, not as a currency.

[roslinpl]

His 4th largest investment is a $12.5B holding in IBM.

Ok ok
You got me. IBM is IT company indeed

So when he is telling to stay away from Bitcoin we should listen to him?

[gollum]

His 4th largest investment is a $12.5B holding in IBM.

Ok ok
You got me. IBM is IT company indeed

So when he is telling to stay away from Bitcoin we should listen to him?

He was not tempted to buy into the it-bubble around 99/2000 and survived the it-crash while other investors lost billions.
He got many billions, how many do you have?
So don't underestimate him.

[hyunsookmom]

Dear Mr Buffet,

you should read this:

bitcoin is:
1. Scarce
2. Durable
3. Portable
4. Divisible
5. Impossible to counterfeit
6. Fungible ( any 1 BTC has the same value as any other )
7. Easy to keep safe ( contrary to popular belief, it easy to print out a paper wallet...)
8. Shiny ( yes the digital bits that make up a bitcoin are VERY shiny)
9. all of the above. + very shiny

Fiat is:
1. Definitely not  Scarce, ( mage inflation in the money supply is monumental )
2. Not Durable
3. NOT Portable... compare it to bitcoin, ( try sending 1 million dollars across the globe, try sending 10 cents. then try again but with bitcoin AHhhhh you starting to get it now eh )
5.  Impossible to counterfeit LMAO
6. Fungible... ya maybe...
7. Easy to keep safe? ya all it requires is huge banks, and even then....  the only reason it works is the fact the government has no problem printing (out of thin air ITS MAGIC!) as much money as they need to be solvent any time they need it, you do know what a bailout is right?
8. Shiny? Its has cocaine all over it so no... not shiny
the only thing that fiat  has going for it is that its widely accepted, for now!

the markets need not care about your lack of understanding.

The markets don't care about you. While they often jump on the words of that old fool you are describing. Bitcoin is a tiny market so far. I'm a believer in it but you got to face reality so far...

[grau]

Remember, this is the same guy that said to avoid investing in internet companies.

This.

[IrishFutbol]

the tech crash

Yes, tech crashed so hard that today no one invest in anything internet related anymore. It is not like i am typing this on an internet forum after all.

Buffet's anti internet comments were made when no one had a clue how to monetize the internet, and no one had a clue what they were buying.  For every Amazon.com, there was 100 more Pets.coms.  There was even a garbage truck company that simply added the word Tech to the end of it's name, and it's stock price went soaring, even though the company had absolutely nothing to do with the internet or with technology.  When he made the comment, he was 100% correct.

[hyunsookmom]

the tech crash

Yes, tech crashed so hard that today no one invest in anything internet related anymore. It is not like i am typing this on an internet forum after all.

Buffet's anti internet comments were made when no one had a clue how to monetize the internet, and no one had a clue what they were buying.  For every Amazon.com, there was 100 more Pets.coms.  There was even a garbage truck company that simply added the word Tech to the end of it's name, and it's stock price went soaring, even though the company had absolutely nothing to do with the internet or with technology.  When he made the comment, he was 100% correct.

Agree and anyone else who says the 2nd richest man from investing in the world is a terrible investor needs to look at their opinions and realize they are sh$t.

[HeliKopterBen]

Intrinsic value is a myth.  All value is subjective, not guaranteed as the word intrinsic suggests.  Anything that has value has one requirement to attain that value; people.  Humans are required to collectively place value on something.

[compro01]

Buffett said the cryptocurrency is an effective payment system, but “so is a check.”

Declaring cheques to be an effective payment system is a fine example of the ridiculousness of the US financial system.

[Eastwind]

Do you not know who Buffet is?  He may be wrong, but he's far from an idiot when it comes to investing.

Yes I know who he is..

And He was born in 1930.

Ok - I am sorry he is not an idiot.
He just do not like IT technologies (EDITED : perhaps he did like IBM:P)

He invested in IBM because IBM was a service company with positive cash flow, hence, low risk. He sold IBM shares later, maybe he found out it was a high tech company.

[Gabi]

Past performance doesn't reflect future performance, a lot of companies were successfull but then failed hard

[TTM]

I guess he's trying to pull bitcoin price down so he can buy a lot of cheap coin  
His first attempt 2 weeks ago was not successful, Bitcoin price raised 15% in one day after his negative statement toward bitcoin  

[hyunsookmom]

Past performance doesn't reflect future performance, a lot of companies were successfull but then failed hard

Dude if he invested in Bitcoin it would cause a massive rally, he could easily make money from this shallow market. He has motives not to, but suggesting he has lost his investment mojo is silly.

Lets imagine Bitcoin became massive, what do you think for one thing that would mean for his dollar denominated stocks?

And he even might have a point that Bitcoin is more of a currency than a store of value. Not because it doesn't store value over the long term but that its volatile. In a perfect world I would use Bitcoin as a transport medium and precious metals as backing and store of value.

[AnonyMint]

1. He say consumers and merchants (he was not referring to investors in BTC) don't use it as a unit-of-account nor store-of-value, i.e. don't retain their cash in Bitcoin, and only cash in/out from/to fiat using as a money order.

2. He doesn't think duplicates can be prevented which dilute its value.

3. He doesn't expect a worse economic crash than 2008 in next few years.

Please remember #3, because he will be highly embarrassed on this one. He is wrong.

On #1, I have to somewhat agree with him, but we are preparing to change this by making features that a fiat economy can't do.

On #2, the network effect will take over much more strongly when the prior sentence is implemented.

[Joshuar]

"Buffett also said he would steer clear of bitcoin. Buffett said the cryptocurrency is an effective payment system, but “so is a check.” The idea that bitcoin has some “intrinsic value is just a joke.”

http://blogs.marketwatch.com/thetell/2014/03/14/warren-buffett-dont-dump-stocks-on-china-or-ukraine-and-stay-away-from-bitcoin/?mod=sfmw

Well... It's too late for some of us to stay away now.

Remember, this is the same guy that said to avoid investing in internet companies.

For everyone that doesn't know, this could be a marketing ploy, for him to buy up Bitcoin and watch it's value rise, Or it could be genuine. Who knows.

[gollum]

Buffet is billionaire - you aint.
end of discussion.

[SLAPMODE]

Dear Mr Buffet,

you should read this:

bitcoin is:
1. Scarce
2. Durable
3. Portable
4. Divisible
5. Impossible to counterfeit
6. Fungible ( any 1 BTC has the same value as any other )
7. Easy to keep safe ( contrary to popular belief, it easy to print out a paper wallet...)
8. Shiny ( yes the digital bits that make up a bitcoin are VERY shiny)
9. all of the above. + very shiny

Fiat is:
1. Definitely not  Scarce, ( mage inflation in the money supply is monumental )
2. Not Durable
3. NOT Portable... compare it to bitcoin, ( try sending 1 million dollars across the globe, try sending 10 cents. then try again but with bitcoin AHhhhh you starting to get it now eh )
5.  Impossible to counterfeit LMAO
6. Fungible... ya maybe...
7. Easy to keep safe? ya all it requires is huge banks, and even then....  the only reason it works is the fact the government has no problem printing (out of thin air ITS MAGIC!) as much money as they need to be solvent any time they need it, you do know what a bailout is right?
8. Shiny? Its has cocaine all over it so no... not shiny
the only thing that fiat  has going for it is that its widely accepted, for now!

the markets need not care about your lack of understanding.

don't be a bitch , i'm sure he knows wayyyyy more than you(behind the scenes) about our desert oasis!!! ;-) LOL!!!

[SLAPMODE]

Do you not know who Buffet is?  He may be wrong, but he's far from an idiot when it comes to investing.

Yes I know who he is..
http://upload.wikimedia.org/wikipedia/commons/thumb/f/fd/Warren_Buffett_KU-crop%2Cflip.jpg/433px-Warren_Buffett_KU-crop%2Cflip.jpg

And He was born in 1930.

Ok - I am sorry he is not an idiot.
He just do not like IT technologies

http://www.c[Suspicious link removed]m/id/22130601

His 4th largest investment is a $12.5B holding in IBM.

^SHA256 where did dat ish come from? hmmmm =) haha