Is Buffet right or wrong?

[equinox9]

Bitcoin is essentially a modern  moneygram.


This example is based on bitcoin maintaining price stability which is likely to occur when widely adopted.


example1
Person A pays x for a £100 money gram to which is sent to Person B. Person B trades the money gram to  x  and receives £100. The money gram is now worthless and disgarded. Person x charged £2.50 for holding and releasing the fiat currency.

example 2
Person a pays x for £100 worth of Bitcoin to which is sent to person b.Person B trades the bitcoin with person x  and receives  £100.  Person x retains the bitcoin and is free to trade again.

The only difference between the two is that in example 2 the transfer method is reused in other transaction. i.e the bitcoin continues to be used and owned by new people. Wheras in example 1 the moneygram is destroyed at the end of the transaction. A new one is printed for a new transaction.

So despite the obvious advantage in speed and it being free...what gives the bitcoin any more value than a single money gram? i.e why would anyone pay £350just to hold what is essentially the right to send a transfer.

Any comments?

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[Kenshin]

He is wrong. Just like he was wrong about Microsoft and Facebook.

[Kazimir]

example 3
Person a pays x for £100 worth of US$ which is sent to person b. Person B trades the US$ with person x receives  £100.  

Thus US$ is merely a less efficient variant of Bitcoin.

i.e why would anyone pay £350just to hold what is essentially the right to send a transfer.

Essentially, this is exactly what ALL money is.

[equinox9]

He is wrong. Just like he was wrong about Microsoft and Facebook.

Can you please explain why he is wrong

[seriouscoin]

He is wrong. Just like he was wrong about Microsoft and Facebook.

Can you please explain why he is wrong

LOL because its not moneygram..... jesus do you know what moneygram means? its an IOU piece of paper.

Bitcoin is a currency, commodity and a public ledger network.

Whoever claim bitcoin to be something already existed is clueless and ignorant.


Now, with the same logic by MR BUFFET, USD is also a moneygram, gold is also a money gram and heck.... my tide detergent (if i use it as a medium of exchange) is also a moneygram.

[Kazimir]

Buffet doesn't understand Bitcoin (like most people). In his comment he even compared it to checks and money orders, claiming they're just as efficient. You must be utterly clueless beyond belief to actually say such a thing.

It's like saying email is just as efficient as pigeon post.

[Kenshin]

He is wrong. Just like he was wrong about Microsoft and Facebook.

Can you please explain why he is wrong

Because even though he is best friend with Bill Gates, he still don't understand Tech investment.

I know Facebook shares go up and down really wildly. But the actual money they make a year is huge.

[seriouscoin]

Buffet doesn't understand Bitcoin (like most people). In his comment he even compared it to checks and money orders, claiming they're just as efficient. You must be utterly clueless beyond belief to actually say such a thing.

It's like saying email is just as efficient as pigeon post.

To me it sounds like hes saying a computer is just as useful as a calculator. Because ppl also use computer as a calculator and thats all Buffet can understand.

[franky1]

moneygram is like:
person A pays £100 to OfficeAofmoneygram.
OfficeAofmoneygram gives Person A a reference number.
person A tells Person B money has been sent.
Person A give Person B a reference number.

Person B hands Reference number to OfficeBofmoneygram
officeBofmoneygram checks with OfficeAofmoneygram that the reference number is valid
OfficeAofmoneygram pays out £100 to Person B

now bitcoin:
Person A sends Person B 0.25btc
Person B waits 10 minutes to confirm its valid

[keithers]

I feel he is dead wrong on this one. Just because he is an investment guru, doesn't mean he is right 100% of the time.

[bananas]

Buffet and OP are right, the only difference is that the "cheque" is limited is the case of bitcoin, so btc cheques are valuable. But it does not need to be, one can change the original source code or switch to an alternative that with the same features except that it is not limited. Which can be easily done by any bank or anyone that can reach a large number of people and process the transactions. So Buffet is right when he calls it a Mirage.

The day a large financial corporation releases a bitcoin based money transfer system, if they keep all other features, bitcoin is over.

Note: Jp Morgan patented a money transfer system that is just the description/copy of bitcoin, including the privacy.

[Coinster]

That Bloomberg journalist, Matt Miller, said something like there is an exponential curve of Bitcoin understanding inversely proportional to age, so while he was struggling with it the chance of his co-host, Tom Keene, 61, getting it and who viewed it negatively, was probably nil.

[seriouscoin]

Buffet and OP are right, the only difference is that the "cheque" is limited is the case of bitcoin, so btc cheques are valuable. But it does not need to be, one can change the original source code or switch to an alternative that with the same features except that it is not limited. Which can be easily done by any bank or anyone that can reach a large number of people and process the transactions. So Buffet is right when he calls it a Mirage.

The day a large financial corporation releases a bitcoin based money transfer system, if they keep all other features, bitcoin is over.

Note: Jp Morgan patented a money transfer system that is just the description/copy of bitcoin, including the privacy.

I'm still waiting for Microsoft to release Internet 2.0 

You dont even know how dumb you sound.

[bananas]

Buffet and OP are right, the only difference is that the "cheque" is limited is the case of bitcoin, so btc cheques are valuable. But it does not need to be, one can change the original source code or switch to an alternative that with the same features except that it is not limited. Which can be easily done by any bank or anyone that can reach a large number of people and process the transactions. So Buffet is right when he calls it a Mirage.

The day a large financial corporation releases a bitcoin based money transfer system, if they keep all other features, bitcoin is over.

Note: Jp Morgan patented a money transfer system that is just the description/copy of bitcoin, including the privacy.

I'm still waiting for Microsoft to release Internet 2.0  

You dont even know how dumb you sound.

So please explain how dumb i am and how smart you are?
If you are thinking in the line of adption rate, bitcoin does not have any significant adoption rate and won't have in any near hypothetical future. Easily reversible.

[kthejung]

Did you know that pigeons can deliver a message faster than a fax machine if the distance is under 1 mile?    Warren Buffet, like all other entities/logic/infrastructure/name-brand in life, has a shelf life; his time as oracle of finance is probably coming to an end.  The only aspect of life that has and will ever remain consistent is math. (yes, I am getting philosophical)  Bitcoins' worth is based on its mathematical structure, security and ease of use, and belief in its value.  The world is constantly changing whether some people like it or not...

[seriouscoin]

Buffet and OP are right, the only difference is that the "cheque" is limited is the case of bitcoin, so btc cheques are valuable. But it does not need to be, one can change the original source code or switch to an alternative that with the same features except that it is not limited. Which can be easily done by any bank or anyone that can reach a large number of people and process the transactions. So Buffet is right when he calls it a Mirage.

The day a large financial corporation releases a bitcoin based money transfer system, if they keep all other features, bitcoin is over.

Note: Jp Morgan patented a money transfer system that is just the description/copy of bitcoin, including the privacy.

I'm still waiting for Microsoft to release Internet 2.0  

You dont even know how dumb you sound.

So explain how dumb i am? Or better than that, explain how dumb Buffet is?
If you are thinking in the line of adption rate, bitcoin does not have any significant adoption rate and won't have in any near hypothetical future. Easily reversible.

Take my analogy, just because Microsoft has a large user base, they cant release their own network and call it internet.

Banks cant release a network like bitcoin because the key feature of bitcoin is decentralized.

And because of being decentralized, any idea about backing it by some institutions or "tangible" good is delusional.

If banks try to copy bitcoin but centralize it, who would secure the network?

You dont even know the fundamentals of bitcoin, and neither does Buffett.

Do you listen to Buffett when it comes to science as well?

[seriouscoin]

Did you know that pigeons can deliver a message faster than a fax machine if the distance is under 1 mile?    Warren Buffet, like all other entities/logic/infrastructure/name-brand in life, has a shelf life; his time as oracle of finance is probably coming to an end.  The only aspect of life that has and will ever remain consistent is math. (yes, I am getting philosophical)  Bitcoins' worth is based on its mathematical structure, security and ease of use, and belief in its value.  The world is constantly changing whether some people like it or not...

Anyone remember a ridiculous statement against email when it was first introduced?

It was something like this

"Email is dead on arrival, who would use it ? and we already have digital mail called fax "

Yup.... fax is all we need for mailing every one 

[bananas]

Buffet and OP are right, the only difference is that the "cheque" is limited is the case of bitcoin, so btc cheques are valuable. But it does not need to be, one can change the original source code or switch to an alternative that with the same features except that it is not limited. Which can be easily done by any bank or anyone that can reach a large number of people and process the transactions. So Buffet is right when he calls it a Mirage.

The day a large financial corporation releases a bitcoin based money transfer system, if they keep all other features, bitcoin is over.

Note: Jp Morgan patented a money transfer system that is just the description/copy of bitcoin, including the privacy.

I'm still waiting for Microsoft to release Internet 2.0  

You dont even know how dumb you sound.

So explain how dumb i am? Or better than that, explain how dumb Buffet is?
If you are thinking in the line of adption rate, bitcoin does not have any significant adoption rate and won't have in any near hypothetical future. Easily reversible.

Take my analogy, just because Microsoft has a large user base, they cant release their own network and call it internet.

Banks cant release a network like bitcoin because the key feature of bitcoin is decentralized.

You comparison in ureasonable. Microsoft would be unlikely to succeed on that just due adoption rate. The whole world is on the internet already, satisfied, and there is a huge tested and working structure around it. But bitcoin in not the internet, again it does not not have any significant adoption and structure.

One(banks or not) can do it "descentralized" and still profit(if that's the interest). As i said one would have to keep all the features(except the fictional limit) to wipe bitcoin.

But just as a side note, bitcoin is not completely descentralized. bitcoin is limited exactly 'cause a centralized organization decided so and can decide differently at any time, there is no contract or law that does not allow it. There is no technological limits either. The scarce is fictional, a mirage. bitcoin is 100% on risk while it does not go mainstream.

[Kazimir]

The day a large financial corporation releases a bitcoin based money transfer system, if they keep all other features, bitcoin is over.

Note: Jp Morgan patented a money transfer system that is just the description/copy of bitcoin, including the privacy.

LOL

*The* biggest advantage of Bitcoin is that it's 100% independent of any company, government, corporation, business or authority.

So if company/government/corporation/business/authority X would release their own Bitcoin variant, it defeats its own purpose by definition.

It doesn't matter what any company releases. The Bitcoin genie is already out of the bottle, and it won't get back in.

[bananas]

The day a large financial corporation releases a bitcoin based money transfer system, if they keep all other features, bitcoin is over.

Note: Jp Morgan patented a money transfer system that is just the description/copy of bitcoin, including the privacy.

LOL

*The* biggest advantage of Bitcoin is that it's 100% independent of any company, government, corporation, business or authority.

So if company/government/corporation/business/authority X would release their own Bitcoin variant, it defeats its own purpose by definition.

It doesn't matter what any company releases. The Bitcoin genie is already out of the bottle, and it won't get back in.

It could be yourself, i just gave the bank example 'cause it is their business and they have resources to go mainstream quickly. They might do it without defeating the purpose. According to JP Morgan patent they don't have any interest in defeating the purpose.