In relation to Warren Buffett, nobody could say that he lacks experience. 91 years are several springs. If he bought his first stock from him at the age of 11, that means he has been in this business for 80 years. Not everyone can boast of a career like his. The “Oracle of Omaha” is a living legend. He is one of the most successful investors in history. In addition, it is an example of perseverance, dedication and prudence. It could be said that he has the reputation of a sage. He is not a Steve Jobs or an Elon Musk. Buffett generates a different kind of vibe. He is not a futuristic genius. He is also not a shark like Gordon Gekko. Warren Buffett fits more into the image of the good-natured grandfather who recommends good sense and measure. Warren Buffett is not a fan of Bitcoin.
First of all, I think it’s a mistake to dismiss Buffett as old. Of course it is natural that the younger ones are tempted to look down on the older generations. The new always wants to replace the old. The new values always want to abolish the old values. It is customary for the “arrogant” young man to come into conflict with the “obtuse” old man. Ultimately, it is the eternal struggle between innovation and tradition. The need to change and the need to conserve.
Second, I think it’s wrong to dismiss Buffett as rich and powerful. The “revolutionaries” always assume that the rich and powerful only want to defend the status quo so as not to lose their privileges. That is not always true. Success is not always blinding. In many cases, it is liberating. Why? Because it can allow us to see beyond resentment, hunger and need.
Third, I think it’s a mistake to reject Buffett for having a different opinion than ours.. All opinions enrich us. The sensible option brings us closer to the truth because of its clarity. Obviously, they are necessary. But the “wrong” opinion also brings us closer to the truth, because ideas need contrast and challenge to reach higher levels of refinement. In conclusion, the opinion of others must be listened to with great interest. The goal of a debate is not to win the contest. It is not a battle between adversaries. The goal is to find the truth. And the most enriching thing in the world is to change your mind. Dogmas, pre-established truths and prejudices are the pillars of the closed mind. The worst thing we can do is listen to an argument biased and defensive, with our heads already made up from the start.
What has Warren Buffett said about Bitcoin?
At the last annual meeting of shareholders of Berkshire Hathaway, on May 1, Warren Buffett made this reflection:
“If the people in this room own all the farmland in America and you offer me a 1% stake and say, ‘pay us a bargain price of $25 billion,’ I’ll write you a check this afternoon. ”.
“If you tell me you own 1% of the apartment buildings in the United States, and you offer me a 1% stake for another $25 billion, for example, I’ll write you another check. It is very simple”.
“Now, if you told me you had all the Bitcoin in the world and offered it to me for just $25, I wouldn’t take it. What would you do with him?
Personally, I have been following Buffett since the 1990s. Every year I read his famous letter to investors. I’ve seen almost all of his interviews. And I’ve read at least 4 books about him. I mean, I’m pretty familiar with his views. So I know that this argument is not new. She has been hearing the same thing from her mouth for more than 20 years. because it is exactly the same argument you use to refer to gold. In fact, it’s exactly the same argument you use to refer to all non-earning assets. Warren Buffett has always preferred to invest in stocks and companies, using fundamental analysis. As simple as that.
Now suppose we buy all the gold in the world for $10 trillion. We are talking about an impressive block of quite beautiful metal. In 10 years, in 20 years, and in a thousand years, that block will be the same inert material as always. For serving us? It doesn’t do us much good. It is an unproductive investment. Now suppose that with that same money we buy companies, real estate, and land. In that case, another rooster crows. Because all that produces goods and services. These are productive assets. In other words, Buffett’s argument is not totally farfetched. In fact, he is right.
What is Bitcoin? Well, Bitcoin is a code in a database. We well know that a code by definition is an abstraction. In other words, a symbolic system devoid of intrinsic value. What does that code represent? Represents a monetary value. A fee, because the monetary value is fixed in numbers. Bitcoin, mMore than a digital technology, it is a social technology. Now, that rate is variable. Thus, Most investors buy Bitcoin expecting its price to appreciate in order to make a profit. The code, of course, is not eaten. Code by itself is useless. There are no underlying assets, no productivity, no dividends, and no annual sales. The only thing that exists is a code whose price fluctuates. In other words, Bitcoin is a speculative asset like gold. Gold beetles use a metal to settle their accounts. Bitcoiners use a code instead. But the fundamental principle is basically the same. What varies is the token used.
Warren Buffett does not invest in non-performing assets. What is the problem? It’s not the end of the world. That does not imply that it is “wrong”. In fact, his arguments are quite sensible. FFrankly, I think you are quite right.. However, that does not imply that I, personally, cannot put my money in non-performing/speculative assets. Obviously, they are more difficult assets to value objectively than in the case of a company. Obviously it is very difficult to accurately predict future demand. Obviously it involves taking a fairly high risk. And yes of course the dumbest theory is applicableand. Nevertheless, you have to put bread on the table somehow. In other words, Buffett is right, but he is still in jail. Once again pragmatism beats theory. ANDhe secret is to be the least of fools.
I discovered Bitcoin in 2015. Since then, I have more than recovered my initial investment. Therefore, I am quite satisfied. If Bitcoin and all cryptocurrencies went to zero tomorrow, my portfolio would be posting gains in excess of the S&P 500 over the last seven years. The point is that I like to sell fractions from time to time to put money into other investments in the context of a diversified and balanced portfolio. I invest in Bitcoin, but always on the defensive. I take profits anticipating an eventual drop. And he bought by drip looking for the best price and doing dollar cost averaging. In my opinion, Buffett makes a good point. However, there are many ways to kill fleas.
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