Bitcoin...Warren Buffett's take

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Despite many making a lot of money on Bitcoin and other crypto currencies, I have to say I agree with his position.

Warren Buffett:
“If you said... for a 1% interest in all the farmland in the United States, pay our group $25B, I'll write you a check this afternoon. For $25B, I now own 1% of the farmland.

If you tell me you own 1% of all the apartment houses in the United States and you want another $25B, I'll write you a check, it's very simple.

Now if you told me you own all of the Bitcoin in the world and you offered it to me for $25 I wouldn't take it because what would I do with it? I'd have to sell it back to you one way or another. It isn't going to do anything. The apartments are going to produce rental and the farms are going to produce food. That explains the difference between productive assets and something that depends on the next guy paying you more than the last guy got."

"Assets, to have value, have to deliver something to somebody. And there's only one currency that's accepted. You can come up with all kinds of things - we can put up Berkshire coins... but in the end, this is money," he announced, holding up a dollar bill. "Anyone that thinks the United States government is going to let Berkshire money replace theirs is out of their minds. Whether it goes up or down in the next year, or five or 10 years, I don't know. But the one thing I'm pretty sure of is that it doesn't multiply, it doesn't produce anything. It's got a magic to it and people have attached magic to lots of things."
Charlie Munger chimes in:
“In my life, I try and avoid things that are stupid, and evil, and make me look bad in comparison to somebody else - and Bitcoin does all three. In the first place, it's stupid because it's very likely to go to zero. In the second place, it's evil because it undermines the Federal Reserve system that we desperately need to maintain its integrity and government control... and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China, and with all of our presumed advantages in civilization, we are a lot dumber than the Communist leader in China."
 
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I think the days of crypto like Dogecoin are over. Where you buy a dirt cheap crypto early and everyone buys it based on popularity, making you some bank.
....I still think there is value in Dogecoin(to the moon) but newer cryptos will not be so successful.
 
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I saw video and I agree him. I‘m not saying you can’t make money (real USD) on Bitcoin but I will stick to normal stocks, ETFs and mutual funds.

Why doesn’t Walmart or Amazon accepting it ?

Why does it take a hit when stock market down ?
 
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People have made money on commodities, antiques, art, futures, stocks, bonds, currency, etc.

And some have made money on the ponies.

But people have also lost money in those same investments.

It all depends upon your tolerance for risk.

I will stick to low fee S&P 500 index funds.
 
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In the second place, it's evil because it undermines the Federal Reserve system that we desperately need to maintain its integrity and government control... and third, it makes us look foolish compared to the Communist leader in China. He was smart enough to ban bitcoin in China, and with all of our presumed advantages in civilization, we are a lot dumber than the Communist leader in China."
There you go, I replied on Bitcoin's behalf without saying a word myself.
 
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Bitcoin is all about creating a notion in someone's mind that they need to buy it ot else, it's the fear of missing out. Everyone I know that has bought Bitcoin went from feeling this way to immediately thinking the opposite, how am I going to sell it and how much is someone going to pay me for it?

The most common thing I've seen regarding Bitcoin is people wanting to hype it up online because they have Bitcoin to sell. It's like, "I want to convince you to do what I did because now that I've done it I can't do anything with it unless you do the same thing too."
 
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I saw video and I agree him. I‘m not saying you can’t make money (real USD) on Bitcoin but I will stick to normal stocks, ETFs and mutual funds.

Why doesn’t Walmart or Amazon accepting it ?

Why does it take a hit when stock market down ?
Ah but there is the question. What do you think would happen to the price of bitcoin if Amazon does accept it someday?
Same would be for Walmart. It’s too soon to say whether these Giants will except it or not but there is speculation that Walmart may.
They are round about ways to use it now with an app.
Also sings of Walmart dabbling around with it.
 
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I agree with the OP post as far as my own conservative type of investing.
Although if you have a small portion of your portfolio where you speculate on some wild ideas there’s nothing wrong with owning some bitcoin, more so if you got in early.
 
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Its a threat because it's NOT a central bank system. it can't be controlled. a fractional reserve system will always have inflation and market crashes. always. anyone who's read Modern Money mechanics know this. I was an early adopter of bitcoin. so glad for it too. I ALSO have assets that produce monthly income. as they suggest one has.
Bit coin is kinda like land, there is a finite amount available. not like a central bank where they just print more money. devaluing it.
don't get digital programmable currency produced by a central bank confused with bitcoin. one if free from regulation and government overreach and the other controls you.
 
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I have a couple thousand in Bitcoin - I did it just to see what it was all about and in that time it's halved in value...which I expected...lol.
I'm not rushing to put anymore into Bitcoin and if that means I'm giving up my small chance to be a Bitcoin millionaire vs the much greater chance of retiring with a few million using the more traditional methods - I can live with that outcome.
 
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There's widespread speculation that Bitcoin was created by one or more governments to flush out illicit money and track illegal activity. One translation from Japanese for the (fake) name of the person who supposedly started Bitcoin, Satoshi Nakamoto, is "central intelligence". None of this would surprise me. Buffett has to be aware of this talk too.
 
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Any non-tangible good and even many tangible goods are fiat wealth. That includes precious metals, gems, stocks, bonds, contracts (e.g. promises), oil, etc. including HOUSING. Gold is really only worth what someone else thinks it's worth, on the global "agreement" market (often manipulated). Futures are just contracts - remember when oil went NEGATIVE in 2020? Stocks - you're joking. Those hold no real value, the value is all tied up in "part ownership (a laugh, you don't own **** in a company unless you have a major shareholder position)" and companies often fail and dissolve. Regardless, probably 95%+ of shareholders use stocks as "investment tools" to increase wealth, most don't care about the "ownership" aspect (which is generally trivial), and stock prices are ONLY worth what someone else is willing to pay, and they can often fluctuate 10% or more intraday on greed, fear, and speculation (and not necessarily on anything tangible within the company). It was just a decade or so ago house prices collapsed 50% on average and now they're up 200% from those periods. What changed to cause this? It's mostly fear, greed, and speculation.

I poo-pooed the cryto (Bitcoin) for 10 years and sat on the sidelines with the same naive notion, meanwhile watching people make MILLIONS or BILLIONS of dollars. It may not have "real world" value on screen, but when someone converted those electronic numbers into cash, and then bought mansions and cars and took trips it sure as heck had value. And it truly still does. Warren would be speaking hyperbole or be a fool if he wouldn't take all the Bitcoin for $25 (which is the price of a modest meal).

I had considered buying Bitcoin a decade ago and if I had, I'd be unbelievably wealthy today at current prices, with a billion dollars in value that I could cash out in about 5 minutes.

I've heard, and made, all the arguments against it and at the end of the day I was woefully detrimentally wrong. Cryptos offer the ability to do things no other "currency" can do with a main advantage of transportability instantly. It also offers near instant liquidity, and the potential for wealth creation like almost nothing else. It's a tool. Not the best tool or the worst tool but a tool.
 
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There's widespread speculation that Bitcoin was created by one or more governments to flush out illicit money and track illegal activity. One translation from Japanese for the (fake) name of the person who supposedly started Bitcoin, Satoshi Nakamoto, is "central intelligence". None of this would surprise me. Buffett has to be aware of this talk too.
How do you "track" activity with a blockchain? While the blockchain is a public ledger all of the crypto-mining is decentralized and so there's no way to identify exactly who owns what?
 
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