Warren Buffett, Charlie Munger Slam Bitcoin Again

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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/pro-btc-wall-st-analyst-urges-not-to-buy-crypto-now-despite-recent-rally

What are you thoughts?
I totally disagree with him, I think Goldman Sachs have more adequate understanding of crypto world

This reminds me a little bit of the clueless Senators in Mark Zuckerberg's FB hearing.

These are smart men. They didn't amass their fortunes without some level of intelligence. However, they are also old men. Men who are a little out-of-tune with technology.

It's hard to doubt people who have been this successful investing, but it seems they are so sucked into the world's script that they can't see the opportunity for innovation beyond fiat currencies and centralized banks that this technology offers.

Some are slower adopters than others. Change is hard for some people.

Here's a pretty interesting FORTUNE article that piggy backs off my previous post: http://fortune.com/2018/05/06/why-warren-buffet-was-wrong-about-google-amazon/

Basically, Buffett isn't the most in-tune with technology, and he's been in similar shoes before...

Yes, I agree with you, and good point about google and amazon, I didn't know he was wrong about these companies too.
Actually Amazon is the company (which I dislike personally) but I mentioned it as example of "Dot-Com bubble"
If many people compare nowadays crypto-companies and ICOs with Dot-Com bubble, I say that some companies survived this "bubble" and became more profitable, and stronger.
Of course many companies will vanish, like most of startups vanish, but it's not the case of bubble, it's the reality.
Some crypto-companies will become Googles and Amazons of the future, I'm sure.

Here's Warren Buffett explaining his stance on bitcoin.

I think he has a point, personally. Your money is not working for you. It is not creating anything. You are hoping that the next person will pay more for the bitcoin than you have paid originally, which is speculation rather than investing.

With a company stock, the company works for you and you receive a part of their profit, which is investing.

Now, I speculate the price of bitcoin will increase in the next few years, but like Warren Buffett said it's not creating anything like a farm or a company or something like that.

From the surface it would seem like Warren Buffet is out of touch with the current investment trends, but look at it from his perspective:

He's worked hard to become the successful investor he is today and he's built his company on the principle of "staying the course". Perhaps it frustrates him that people are looking for "easy money" by investing in crypto instead of working their asses off to accumulate true wealth like he has.

He likely views crypto as "maximum reward for minimum effort" which might explain his aversion to crypto. Investopedia does a fantastic job of explaining his life and provides a bit of insight into how he approaches business. It made it clear to me that he values hard work over quick and easy investments any day of the week: https://www.investopedia.com/ask/answers/081314/how-did-warren-buffett-get-started-business.asp

@samuele said in [Warren Buffett, Charlie Munger Slam Bitcoin Again]

With a company stock, the company works for you and you receive a part of their profit, which is investing.

Now, I speculate the price of bitcoin will increase in the next few years, but like Warren Buffett said it's not creating anything like a farm or a company or something like that.

I think the same is with blockchain companies, or we can even say IT companies in general.
In some cases when company receives profit, you as stakeholder (token-holder) can receive part of profit. Or when the company does well in the market, their stock (tokens) raise in price, sometimes significantly.
For me and I think for most crypto-enthusiast Bitcoin is gold. Which value gold creates, it's just peace of metal..

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