Hello Steemit friends,

yes, i admit i'm a friend of a clear position, whether it's friendship, business or in the field of cryptocurrencies. Realistically it cannot separated from each other. Who has a clear position does that normally in almost all areas of life too, also Warren Buffett, big investor and meanwhile some kind of a legend. He is known for a clear investment strategy and many smart statements which are often cited. Some of the more funny are:

„You want to have a passion for what you are doing. You don't want to wait until 80 to have sex.“

So he positioned himself a long time ago regarding cryptocurrencies and amplified that yesterday with a harsh statement..

Bitcoin a method for rat extermination?

In the interview with CNBC he used strong words..

"Bitcoin is rat poison squared"

Warren Buffett on bitcoin: Rat poison squared video by Fox Business (05.05.18)

Now i asked myself what's behind? Who or what are the rats and is in such strong statement a grain of truth or do we see a defensive attitude because of growing influence on other assets where Buffett is tied to or there are problems of comprehension of a brand new technology?

A non-productive-asset

Buffett compared Bitcoin to gold. He used often a nice metaphor in the past for that what eventually represents my title picture in this post. With my own words:

If i take all the gold of the world and form a huge cube and put it into a desert, in the sun what will happen?

Nothing!

That thing is lying around the whole day, is shining and will be warmed up, also after 100 years the block of gold is producing nothing and will be just beautiful!

That's correct, of one ounce of gold there is no chance that tomorrow there are two ounces of gold. I can exchange gold for other assets and maybe have a appreciation and in the end two ounces of gold or i use arbitrage between two metal exchanges to get more of the shiny, yellow non-ferrous metal. And so we get to..

The greater fool theory

If Bitcoin would be just gold and i own some, the value is determined if someone other is willing to pay more for my Bitcoin what i paid for or i do a clever trade for something other with a higher market value like in the fairytale Hans in Luck.

Ok that sounds adventurous, right? Is Bitcoin just for lovers, is it just a baseball trading card which eventually appreciates value?

Is Bitcoin, are cryptocurrencies just objects of speculation?

Maybe Fred Wilson asked the same question, who himself is a big fan of Warren Buffett, but on the other hand also a crypto investor (or maybe just a speculator?).

He understands cryptocurrencies like Bitcoin and Ethereum as fuel for the development of a brand new infrastructure for technologies based on internet protocols.

Why the SEC is constantly looking at cryptocurencies and is comparing them with securities?

Ethereum is currently in the spotlight und die SEC (securities exchange commission) has many more question to clarify.. Because also for regulators and WarrenBuffett too it is a entirely new field.

Is STEEM just a lump of gold in the sun for speculation of value?

Just writing this article on a platform called Steemit, where STEEM is the underlying cryptocurrency and fuel and therefore has become a part of The Internet of Value. Simple comparisons with a lump of gold are not enough anymore.. and that is just one example of the many!

As much i appreciate Warren Buffett in terms of stock analysis so conflicted i'm with his opinion about cryptocurrencies. If you just take a look at the development of EOS, where Steemit with nearly one million registrations was just ONE use case or testing ground, also like the prework to Bitshares as exchange, then i have serious concerns with these strong words which are simplifying everything too much..

What could be additional reasons for the provocative statements?

• lack of understanding regarding the new technologies - Buffett stated long time before that he is avoiding technology stocks
• a threat to his assets with cryptocurrencies - the rat poison for his valuable assets? - shift of values - probable still uncritical for him regarding market cap and maybe even positive if companies like IBM, Microsoft, Apple, Google count on blockchain technology which is the basis behind
• own speculation for good entry point into the crypto market - i think unlikely - but everything is possible
• he sees cryptocurrencies as some strange type of private money which is disappearing soon without any economic value - quite possible if we think of the his technology understanding
• he compares the market cap of Bitcoin with Coca Cola and and concludes something not true! - a non-productive asset could not have the same market cap as a worldwide acting and famous softdrink producer which has a simple and easy to understandable business model.. where would we end up?! 😁
• the volatility of cryptocurrencies is far too much for an defensive investor like him - confirmed and understandable
• the flood of always new currencies, tokens makes a comprehensive analysis almost impossible (just reading) and is not transparent, a lack of understanding - confirmed
• the market is still very young and sees strong growth, Buffett loves established, profitable companies - it's still too early, many companies will be just created - but Buffett is already invested in blockchain affine large companies and buys in himself automatically, but just not pure cryptocurrencies plays

Following another video where he emphasizes his opinion:

Warren Buffett: Bitcoin Is An Asset That Creates Nothing | CNBC video by CNBC

What are your thoughts about the statements by Warren Buffett?

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Exciting times ahead steemit friends!

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