Steemleo Show #16 | The Real Reason Why Warren Buffett Hates Crypto
Warren Buffet was recently interviewed on CNBC and was asked about his opinions on cryptocurrencies and Bitcoin after his dinner with Justin Sun and a few of his “crypto buddies”.
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There is no doubt that Buffett is an incredible value investor, but when it comes to evaluating cutting edge technologies, he may not have the best track record. He has made a MASSIVE bet on Apple, but he didn’t make that bet until 2016 — when the company was already a global behemoth with a massive amount of positive cash flow.
Buffett doesn’t predict “the next technological breakthrough”, instead, he focuses on income-producing assets that are tangible in the here and now and can reliably grow in the future. That’s why I believe his perspective on investments regarding innovative technologies ought to be taken with a grain of salt.
Links Mentioned:
- https://www.cnbc.com/2020/02/24/warren-buffett-cryptocurrency-has-no-value.html
- https://cointelegraph.com/news/anthony-pompliano-speaks-to-cnn-about-warren-buffett-and-bitcoin
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Podcast Notes --> https://steemleo.com/buffettonbitcoin
▶️ 3Speak
I think his also not aware of his biases, yes his investment principles are sound but in a hard money system, he wouldn't be able to pull off what he did and yes he would be rich but not as rich as he is now. If you look at this portfolio lots of what his invested in is propped up by money printing and an almost fed put on equities.
To say that gold and other bitcoin are different from what his doing is ignorant in my opinion. Yes I agree at this point gold and bitcoin you are making money because of the greater fool principle with someone willing to pay more but that doesn't exclude what his doing.
The low-interest money from the fed, pension fund capital is the greater fools making him rich, its all one and the same if you take a step back. I feel the number value of these peoples portfolios have inflated their egos and they feel they're geniuses.
If you were first or the best at playing a rigged game sure you'll win and win big
Lets cut out the money printing, let him actively use his capital to create production, like the rest of us and we see how quickly that portfolio gets eaten up
I agree on some level. I think the income-generation point is fundamental to what Buffett and similar value-investors look for. They will never touch an asset that doesn't have a long track record of producing positive cash flow. Things like Bitcoin and Gold are useless to them because all you can do is watch it (unless, of course, you are aware of how to leverage them to generate cash flow like locking up ETH in CDPs).
This industry is young and it will take a while for the "titans" of industry to jump in. Like you said, they play a rigged game and they will look for a way to rig this game before even dipping their toes in.
Posted via Steemleo
Warren is a VER RICH old man and he won't invest in it. He reminds me of my dad; I tried to explain the concept of decentralised media and Web3.0 potential and he wasn't having any of it.
I mean, how do you expect a guy that uses flip phone to invest in Bitcoin? lmao.
Posted via Steemleo
LOL, my dad is the same. It's like his brain dead, like its Stockholm syndrome you would rather choose to remain in an oppressed system then have to take responsibility of your own means of production and value. To each, their own but don't come crying to me for a hand out once they start a bail-in or obliterate your pension.
If he comes crying for help because the government fucks him over, you're going to show him love with a sprinkle of "I told you so"
100%, I think the 3 of us here are all in the same boat (and this is prevalent across the crypto space) where we know and understand a bleeding edge development in the way we use the internet and think about money, but the older generation is having none of it.
It will be a lot of fun to see this unfold over the next 3-30 years. I'm happy to have a front-row seat to the show :)
Posted via Steemleo
What if in 30 years time, something more "powerful" than blockchain comes out and we become the boomers holding on to "ancient tech"? lol
well some investors are used to the old investment systems and would rather stick to it than invest in any new types of investment platforms,but i will advice him to give it a try,investing on cryptocurrencies can give him good return on his investment,all he needs to do is to first of ensure he acquires the right knowledge and tools he will need to get good rewards from investing on cryptos...
Posted via Steemleo
Agreed, some people won't see the value in this until they do some research. Even if Buffett were to thoroughly research Crypto, I don't think he would invest any time soon. He waited to buy Apple until 2016 because he is only interested in massively global companies that have a core value: they have a track record of reliable income-generation and a predictable future of continuing to generate more income.
Unless crypto acquires a long track record of generating income, Buffett will never invest in it.
Posted via Steemleo
You make some very good points, but what I'll hand to Warren Buffett is that he has been extremely succssfull investing HIS way. And, as you say, that success is built on basic industries. Now, if he was mediocre at what he was doing, I'd probably not cut him as much slack. But I don't think we can expect a metaphorical marathon runner to do the pole vault.
Right now (looked at in the greater spectrum of investing) cryptocurrencies occupy some space we might call "highly speculative hybrid assets." Half the world — including many in the crypto industry, itself — hasn't even clearly defined what a cryptocurrency is and does. Even as we sit inside the industry with a front row seat, we're part of a show that's basically tiny, in the greater scale of things... consider that there's maybe $8 trillion in gold out there, compared to $250 billion in total crypto market value. The total market cap of the S&P-500 stocks is some $25 trillion, just to add perspective.
My point here is pretty much what you've alluded to: We're not Warren Buffett's target market. And we're just a tiny grain of sand on his scopes... an unproven grain of sand, at that. Right now... we're (as a comparison) somewhere on the scale of when there were maybe 10 million people using the Internet... and we thought that was a really big deal!
It will be interesting to see where we are in 25 years from now...
=^..^=
Posted via Steemleo
I would put it this way. With all my respect to W.B. (as a matter of fact, he is my top investing role model), he turns 90 pretty soon. He has experienced some interesting live events, so he reflects them in his opinions though indirectly. In the past, things did not move that fast. But. Say last two decades, things have kind of rapidly got faster, like instant payments or digital asset, both secured by cryptocurrencies. Sometimes, old generation is a bit sceptical to new things like the crypto in this case. Therefore, I am totally OK that the Oracle of Omaha rejects crypto.