Bitcoin...Warren Buffett's take

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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.
"[Land, gold, stocks, mutual funds, houses, guns, marriage, kids, etc.]...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."
 
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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.
Hindsight is always 20/20 and what you just said is the same as saying had I put all my money into Apple in 1992 or saying after reading the Lotto numbers had I just picked those numbers I'd be really wealthy today. Yes, both are true, but since no one can predict the future and crypto was new and untested and Apple looked like it was going to go down to MS it was all just speculation. Sometimes speculation does work out but much more often than not it doesn't. Was it a mistake to not buy Bitcoin a decade ago? As of today, absolutely, but at the time I'd argue not necessarily 10 years ago because it could've just as easily tanked.

The question now is should someone buy Bitcoin today and if so how much of their portfolio should they spend on it? Well if 10 years from now Bitcoin is $500K per coin then sure they should've put everything into Bitcoin but if in 10 years it's only $2K per coin then, no, they should not have put anything into it. Bitcoin is still speculation and while it may not fold and go away it may not go up in price either.
 
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Hindsight is always 20/20 and what you just said is the same as saying had I put all my money into Apple in 1992 or saying after reading the Lotto numbers had I just picked those numbers I'd be really wealthy today. Yes, both are true, but since no one can predict the future and crypto was new and untested and Apple looked like it was going to go down to MS it was all just speculation. Sometimes speculation does work out but much more often than not it doesn't. Was it a mistake to not buy Bitcoin a decade ago? As of today, absolutely, but at the time I'd argue not necessarily 10 years ago because it could've just as easily tanked.

The question now is should someone buy Bitcoin today and if so how much of their portfolio should they spend on it? Well if 10 years from now Bitcoin is $500K per coin then sure they should've put everything into Bitcoin but if in 10 years it's only $2K per coin then, no, they should not have put anything into it. Bitcoin is still speculation and while it may not fold and go away it may not go up in price either.

Everything in life is speculation, when you boil it down. Leaving your house, you speculate on safety vs. needs to go somewhere. Remaining in your house, likewise. Buying Apple, or MCI Worldcom, or any other item meant as some type of an investment vehicle, you speculate on which car to buy, which spouse to take, whether to have kids, and an endless other list of daily decisions. WE all get that.

In this particular case, there are very few things that returned more faster in a shorter timeframe than Bitcoin which would have turned someone into a millionaire from almost nothing in under a decade, or under a couple years if timed perfectly. Few things other than a winning lotto ticket or entertainment career might manage that.

I'd put SOME disposable money in crypto, b/c you cannot win if you don't play. At worst it goes to zero. Buffett stating he would not take all of it for the price of 5 gallons of gasoline is absolutely stupid.

At this point, find a better safer alternative that has the opportunity for return like crypto or Bitcoin. There simply aren't (m)any. Metals have been flat for 10 years, except when they dropped and recovered. Stocks have done well for a decade, but can be extremely volatile like crypto. Houses are over-priced. Interest rates are soaring. We're heading right into a depression. Cash is crashing. Best bet is probably index mutual funds for safety and growth IMO. But some money in crypto is a no-brainer.
 
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At this point, find a better safer alternative that has the opportunity for return like crypto or Bitcoin. There simply aren't (m)any. Metals have been flat for 10 years, except when they dropped and recovered. Stocks have done well for a decade, but can be extremely volatile like crypto. Houses are over-priced. Interest rates are soaring. We're heading right into a depression. Cash is crashing. Best bet is probably index mutual funds for safety and growth IMO. But some money in crypto is a no-brainer.


Gold (not GLD ETF trash) has been highly manipulated downward.
Stock market bull run is coming to an end.
Houses are overpriced, thanks to ______ .
Interest rates need to increase, no arguments why they shouldn’t increase.
Yes, lots of bad news on the horizon and headed our way, to ignore it would be crazy.
Have cash on the sidelines for bad times ahead, bad things will happen in the future.
I‘m not against people trading Bitcoin or Cryptos……. just pay taxes on your gains. If they make millions in gains, awesome 👏. Declare all gains and pay your taxes on those awesome gains.👍

1% folks with their Bugatti, G700 private jet and Mega yacht don’t worry about what’s going on like you and I worry about. On my YouTube channel I’m warning all my subscribers to get ready….. the same way I was warning them in late 2019.

Theres a few folks on BITOG that I sent a PM to for them to get ready. Hopefully they realize there’s just too many bad things happening all at once around the globe and in the USA. Not everything is sunshine and roses like the people on TV say it is.

.
 
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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.
You were not wrong about BTC. The market was being manipulated in the worst way.
 
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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.
Nailed it.
 
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Not sure what the bitcoin pumpers are talking about. Anyone who bought 6 months ago, lost half their money. Warren is right.

EE505A0F-A5CE-41FD-B2C7-1B67FCE05A08.jpg
 
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Not sure what the bitcoin pumpers are talking about. Anyone who bought 6 months ago, lost half their money. Warren is right.

View attachment 99188
6 months ago was it's all-time record high. Anyone who bought last July and held is breaking even. Anyone who bought in December of 2020 or earlier has doubled their money or better. I can skew numbers too, doesn't mean I'm "right." Shall we discuss how much value the US Dollar has lost in the last 6 months? 1 year? 3 years?
 
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I think the most valid point he made was that he, nor anyone else knows what will happen with it in the years to come. I would say for sure though, if it keeps dropping price, people will buy it back up in a swarm and restart the bull rush increasing it's value once again. How long this goes on, or what it reaches...who knows...?
 
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If you own and ultimately control the blockchain, you have access built in.
Here's my understand of the blockchain having a read a book about it a few years ago. The blockchain is just public ledger that exists on tens of thousands of computers. When a new transactions comes in it is sent to all of the available nodes on the network for authentication and if greater than 51% of the computers agree it's a legit transaction then it's authenticated and added to the blockchain for all the world to see. But, there is no way to track who that transaction belongs, or at least not directly, and therefore it's not directly traceable. This is the decentralization part of this system and there is no single database of people's names and what they own. The owners of transactions are identified by private/public key hash pairs and it is impossible to guess the private key knowing the public key and no private information is stored on the blockchain. Now, you can theoretically learn something about people involved since you can look up wallet addresses and all of the transactions that have been sent to or from that wallet address but this is not easy forensics. Do able but not easy. So the idea that this is a widespread way of monitoring illegal money seems far fetched as there are a ton of transactions every day and these forensic techniques are very time consuming. Now if you high value target I guess it could be worth The Man's time but not as a large scale monitoring device.
 
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Warren Buffett drools all over his necktie daily, don't listen to him on blockchain he doesn't get it...dollar cost average in here and be thankful you have the opportunity.
 
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I've thought about getting into the mining aspect of it as I have an off-grid building that generates excess power with nowhere to use it. I just don't have time to research the right place to start.
 
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