"Listen to your elders but make your own decision" sounds like a good advice.
When a respected investment luminary speaks, I think we should listen and discern what he's trying to say. Buffet said the following during a recent interview with CNBC:
- "The recent craze over bitcoin and other cryptocurrencies won't end well".
- "When it happens or how or anything else, I don't know".
- "But I would not take a short position on bitcoin futures".
Video:
I'm a believer and a supporter of the bitcoin revolution but I won't dismiss what Warren is saying as mumbo-jumbo, although it may sound like it especially that his statements seem to contradict each other - if your certain it won't end well, then you should be certain that you will make a handsome profit if you short it - make sense?
Perhaps he is just making a general statement. Maybe he really mean is that out of the 1,300+ cryptocurrencies, only a handful of them will survive and the rest will crash and burn like meteorites. I'm pretty sure he is not comparing bitcoin and altcoins to the tulip mania just like the other pundits in the investment and banking industries. I think he is comparing bitcoin to the dot.com revolution where thousands of companies perished and only a few in the likes of Amazon, Facebook, Expedia, Twitter, Netflix etc proved to be the fittest.
If you look at it from this angle, I would argue he is absolutely right. Having 1,300+ cryptocurrencies is utterly unsustainable in the long run. Survival of the fittest does not just apply to the animal kingdom but to human inventions as well. Think of it, how many fiat currencies do we have right now? Around 195 (since there are 195 countries right now). 195 I think the biggest number of cryptos that can co-exist long-term assuming the scenario where each country of the world "adapts" one crypto as their own. But this is still too high considering the very nature of cryptos - borderless whose value does not depend on a single economy or country.
Which crypto will survive and which ones will perish remains to be seen since we are still the in the "exploration" stage - more and more crypto are being born every day. In the latter part of 2018 however, we could be entering the "exploitation" stage and existing cryptos by then will battle it out for survival.
In my next blogs, I will peel the onion on this "survival of the fittest" topic to give a bird's-eye view of the crypto universe.
Disclosure: This post does not intend to provide investment nor does it represents that the securities or services discussed are suitable for any investor. Investors are advised not to rely on any information contained in the article in the process of making a fully informed investment decision.
How familiar! I was much less nice about it!
Behold Warren Buffoon's Ignorance
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awesome
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he is one of the greatest and wealthiest people alive but on this i will disagree with him and take Elon Musk and Bill Gates advice , the future is cryptos, it time for us to adapt to the changing time
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This is really interesting.
Cheers
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"...they will come with a bad ending..." In Buffett's mind they will because when the next president comes into office after the current one, he will wrap around them around his finger like he did the previous presidential administration, and make sure of their collapse. Of course he hates cryptos. He also hates oil pipelines, locally owned newspapers, all sodas except Coke, all department stores except Wal-mart. But he really likes CSX (train transport co moving oil instead of pipelines), his new media conglomerate (he started buying up local newspapers so he could write his own news), Wal-mart, Mcdonalds, and everything else he has in his portfolio. He hates cryptos because he doesn't understand the sentiment behind them. He will not buy something he doesn't understand. I would not at all be surprised he changes his tune within a few years. Great post @sandalphon!
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he just is not sure of cryptos potential.and it is ok.I believe,nobody is certain of what cryptos are capable in the future.Only time will show.Until then,I don't see the reason not to make money from it.
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Well, listening to the interview, he seems to be admitting that he really has no idea on Earth what cryptocurrencies are, how they work, etc.
It's perfectly understandable that he would choose to ignore crypto as an investment opportunity for himself and Berkshire Hathaway. He's done quite well working with things he DOES understand.
On the other hand, since he doesn't understand them and admits he doesn't understand them, it's a little arrogant to predict their future, don't you think?
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I think he is right when he says what's happening now will come to an end in a bad way. I don't think the technology will come to a bad end, but I think the current state will. There's no way things should be working the way they are. We have absolute vaporware with market caps over a billion dollars. We have coins whose main appeal is that they pay crypto dividends, but the valuation on the coin makes the dividends pay peanuts in percentages. I think the solid tech coins have a long way to go in the upward direction, but if you picked out all the useless or scam coins out of the market today, you'd be able to find $100+ billion of value without much trouble.
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agreed. not to discredit any coins and its developers but I think dogecoin is one of those overvalued coins. even its owner and develop admits it's way overvalued.
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I didn't get the impression that Buffett was talking short-term, or about alt-coins. He seemed to be saying that cryptocurrency in general and Bitcoin in particular are going to go down in history as fads without a real, sustainable value proposition. At the same time, he claimed personal ignorance as to what crypto is and how it works, which is why I feel free to dismiss his findings even though he's Warren Buffett.
Yes, BTC is overdue for a huge correction as way too much of its current market value is based on hype.
Yes, a lot of the other coins are not and never have been anything BUT hype (including Dogecoin, which never pretended to be anything but a joke), and at some point a lot of them are going to implode into punch lines and then into infinitesimal footnotes in search engines.
My personal bet (and where I'm putting most of the very little money I have in crypto) is that Ethereum will be one of the long-term survivors/thrivers.
I take single-digit-USD flyers on the occasional small coin that this or that analyst convinces me has potential.
The instant it became obvious that the big players in Old/Wrecked Bitcoin (BTC) were going to renege on the Segwit2x deal and keep fees high and transaction times long, I got rid of what BTC I had left, and don't regret it (I had very little left and would only have made a few hundred dollars if I had waited for it to hit e.g. $15k). I've got a little (very little) Bitcoin Cash and plan to hold it and maybe get some more.
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you have a point. but I think this guy is being modest. he understands crypto better than the average joe. when he says he understands something, he means he knows it in and out to put his money on. before he invests in any company, he and his team of topnotch researchers have spent tons of hours researching the company, its competitors and the industry it is in as well as met with the top management of the company to assess the company's leadership in terms of strategy formulation and execution.
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That's a reasonable rejoinder. The guy has been making huge profits for decades in his own chosen investment areas, so he's obviously no idiot. Presumably his researchers have given him the rundown on where they think crypto is going, and that rundown is such that he considers it something he can dismiss. I disagree, but I don't have the kind of record he has. If I was someone listening to me about investments versus Warren Buffett about investments, I'd take Buffett's word over mine every time :)
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This post has gratitude of 8.57 % from @appreciator thanks to: @sandalphon.
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Buffet has always said that he doesn’t invest in things he doesn’t understand. He never used options calling them “weapons of mass destruction” until he learned how to buy stock at a discount with them. So maybe it’s just a matter of time before he sees their potential and choose one or more to invest in.
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makes sense. but I doubt if he will ever invest in crypto. he never invested in any dot.com companies for examples as they do not fit his investment criteria neither do cryptos.
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I agree. With all his success there’s really no reason for him to invest in cryptos at his age.
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This post has received a 8.42 % upvote from @boomerang thanks to: @sandalphon
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Really? So humans will pass on the chance of making government and their bloody control freak regulations and taxes irrelevant? Think we all know which guess is as good as mine.
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July 2010 $0.08 Bitcoin Price.
July 2017 Over $1,800 Bitcoin Price.
It may not end well. But it was one great ride!
It is hard to doubt the power of Cryptos!
And it makes me so VERY happy, all the millionaires thanks to Cryptos!
Always wishing everyone the VERY best of health and happiness! Great Karma! Positive Energy! Blessed 2018 my Friends! :)
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May 2018 offers more returns than the year before.
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Glad you shared this
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You make a great point. But the internet has niches and people like to be exclusive. I think a lot more coins will survive than people might believe for many different reasons. But yea I agree 100 percent we are on exploration phase for sure.
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Thanks for the video and the advice.
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What if we take our actual 'money in the bank' profits and buy shares of Berkshire Hathaway with them? Will we still come to a bad ending?
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I like the idea.
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This post was resteemed by @steemvote and received a 27.69% Upvote
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Coming from one of the richest men in the world that understands the system and has been in it for over 30 years, I think he’s in a good position to make such statement. And besides, there’s enough truth in what he’s saying 🤷🏽♂️
Lovely post by the way! 👍🏻
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That's the easiest prediction in the world to make damn near all good things come to an end but crypto is the currency of tomorrow only way it goes away is governments making it illegal
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