Buffett and Gates are becoming frightened of Bitcoin. Tell people to stay away.

[sss12]

Buffett is very very smart (dare I say a genius) and calculating when it comes to investments. He did not invest in Tech companies during the Nasdaq bubble as they were in hyper-growth and priced in PEG terms. He likes insurance companies, banking, and stable dividend companies like Coke.

He's investing in Apple now because it fits his style. Lots of cash (hundreds of Billion$), a consumer market that is borderline addicted to the product (think KO) and Apple pays out dividends.

Buffett and Munger may not be tech-savvy, but they know money and banking. Berkshire has about $67B invested in banking stocks. They are also very old and even if they work hard at it, they cannot spend enough of the yearly income they receive from their investments.

Imo, they understand bitcoin very well. Yes, bitcoin is a threat to their investments in banking stocks and it is not something they can control and manipulate along with their powerful friends as it's decentralized, but read previous paragraph and you'll see that I don't think that's the reason they hate it.

Ponzi, tulip, rat-poison squared, turd, harvested baby brains - these are hateful words that people with such riches and status should not be using on an insignificant asset. Why do they even take the time to discuss bitcoin as the short time they have left in this world is so valuable? My answer is: Peer-pressure

Yes, unbeknownst to most people they are humans and have human emotions. They may very well be out of .1 percent of the world population's league, but they have people they consider to be their equal, or even people they consider to be better than them. And whaddyaknow... there is a huge demand in that circle for bitcoin.

Sources:

https://www.fool.com/investing/2017/09/28/why-warren-buffett-loves-bank-stocks.aspx

https://twitter.com/x/status/993969955300368387

Peer pressure ? Wow, your excuses for the BTC correction are unbelievable and never ending.

Did you ever think that the draw down has been caused due to the MARKET finally valuing it where it should be ?

BTW....Buffet and munger were discussing it because they were ASKED their opinion.

I take it from your never ending cheerleading you are still long from 18k?

 

[sss12]

Actually theyre not... try initiating a wire at midnight. Also the recieving bank could take their sweet ass time processing it which is out of your bank's control. I pay 20 bucks a wire transfer which is cheap compared to other banks. Not to mention their bank charges probably another 10. Bitcoin can be a few bucks total for both recieving and sending and I can initiate it at 3am and have the recover get it by 4am or in the case of Litecoin 15 mins later. Great for paying out ransom kidnapping money.

Ok, when I need to send a wire at 3am and have someone receive it at 4 I'll turn to BTC.
If you are serious,
You just illustrated why BTC is a joke as a currency.

Also...if you are paying 20 a pop on wire transfers and have any type of balence/relationship you need a new institution.

 

[johnarb]

...
I take it from your never ending cheerleading you are still long from 18k?

I started buying bitcoin in 2013 (which may sound like a great time to get long, it wasn't). My first buy, the price was $100 and btc had sharp upside move then to $1200 and then experienced a bear market for over 1.5 years bottoming at ~$165 in 2015. My last purchases of btc was in the $1000's area.

My cost-basis was around $650/btc, but since I've taken more than my initial investment, my cost-basis is negative. Let's just say bitcoin/cryptos are my biggest winning trade and I used to trade options and had some wild times there.

When I see bitcoin at above $8,000, I don't see a price that is depressed, I see a price that is amazing and didn't think would hit until 2020. It was a long-term trade as mentioned by Hoi

I saw Nvidia when it was ~$6 back in late 2008 and thought it was a bargain (no debt and about $300M cash, this was from what I remember looking at the Yahoo Financials). Back then, there was no crypto mining but Nvidia was being used in tablets, cell phone gpu's and starting to be used as tablet and cell phone cpu's. I thought it was way, way undervalued.

It's currently at $250+ and I'm still making a lot more on cryptos than I would have made in NVDA

You should stop thinking that I'm a loser in this cryptos trade and focus on your trades.

 

[sss12]

I started buying bitcoin in 2013 (which may sound like a great time to get long, it wasn't). My first buy, the price was $100 and btc had sharp upside move then to $1200 and then experienced a bear market for over 1.5 years bottoming at ~$165 in 2015. My last purchases of btc was in the $1000's area.

My cost-basis was around $650/btc, but since I've taken more than my initial investment, my cost-basis is negative. Let's just say bitcoin/cryptos are my biggest winning trade and I used to trade options and had some wild times there.

When I see bitcoin at above $8,000, I don't see a price that is depressed, I see a price that is amazing and didn't think would hit until 2020. It was a long-term trade as mentioned by Hoi

I saw Nvidia when it was ~$6 back in late 2008 and thought it was a bargain (no debt and about $300M cash, this was from what I remember looking at the Yahoo Financials). Back then, there was no crypto mining but Nvidia was being used in tablets, cell phone gpu's and starting to be used as tablet and cell phone cpu's. I thought it was way, way undervalued.

It's currently at $250+ and I'm still making a lot more on cryptos than I would have made in NVDA

You should stop thinking that I'm a loser in this cryptos trade and focus on your trades.

Whatever happened to Hoi ? Did he leave your cheer team ? Yes, I do focus on my trades and staying on the right side of a trend. Long or short.

 

[johnarb]

Whatever happened to Hoi ? Did he leave your cheer team ? Yes, I do focus on my trades and staying on the right side of a trend. Long or short.

Hoi retired as he said he was/is 70+ yo. He did hint he was going to retire in a few posts as his target for btc was $7K and was hit.

 

[sss12]

Hoi retired as he said he was/is 70+ yo. He did hint he was going to retire in a few posts as his target for btc was $7K and was hit.

Calling BS. Most 70 yr olds are not so arrogant. They have been through the trenches and even the most successful know they aren't all the sh@t!

Retire ?! From what ? Writing, opining ?

Hell, even IRS RMD's start at 70 1/2 !

 

[dozu888]

The cryptos are sorting out the fools from the astute. In hindsight it will look obvious but right now it could go either way.

either way, yes.

https://www.dailyfx.com/sentiment

but the house is short on this one... way short... usually the house is not the fool.

All Ponzi's are zero sum, so it's no surprise to see some people made money from it. Profit is profit, but rat poison is still rat poison

 

[dozu888]

Those who have actually lived thru the 2000 bust, raise your hands.

You can't make this stuff up. One of the poster child of that bubble was Pets.com, $300m cap at it's peak.

Today we have doggie coin... meant to be a joke, but has become a $600m white paper.

People are so blind they can't see a bubble in point blank range.

The entire crypto space is currently capped at ~$400b, about 1/2 of AMZN..... if you had $400b, would you buy 50% of AMZN, or a bunch of crappy software with virtually zero penetration, plus a bunch of white papers... as a 25-year IT veteran, I'd value the entire crypto space at about $100b right now, considering the quality of the products, penetration (both in the user community and the developer community).. and $100b is quite generous.

This means 75% down from current levels... but can easily over-shoot to 90% down in a crash.

 

[Illini Trader]

Those who have actually lived thru the 2000 bust, raise your hands.

You can't make this stuff up. One of the poster child of that bubble was Pets.com, $300m cap at it's peak.

Today we have doggie coin... meant to be a joke, but has become a $600m white paper.

People are so blind they can't see a bubble in point blank range.

The entire crypto space is currently capped at ~$400b, about 1/2 of AMZN..... if you had $400b, would you buy 50% of AMZN, or a bunch of crappy software with virtually zero penetration, plus a bunch of white papers... as a 25-year IT veteran, I'd value the entire crypto space at about $100b right now, considering the quality of the products, penetration (both in the user community and the developer community).. and $100b is quite generous.

This means 75% down from current levels... but can easily over-shoot to 90% down in a crash.

I raise my hand, yes I lived through and invested through the 2000 bust and I also invested through the 1973-74 crash which was much worse than the 2000 bust.

In '73 I can remember actually thinking that when people realize they could buy the entire McDonalds chain for the price of a Bic Mac, stock prices will stop dropping. There has to be value here at some level. I have read historians say it was worse than the depression of the 30s but has not gotten the historical significance because it did not have the economic crash to go with it and only last 2 years.

So, I am not naive here at 73 years old, I have seen bubbles and reverse bubbles where prices get so low no one can see the value of anything.

For the most part we are in agreement here. 95% of the Crypto space is doggie crap but Bitcoin and Litecoin are not. You have tried to walk it back, but you, yourself, in this thread have admitted that Bitcoin might become the digital gold.

You could be right that Bitcoin could drop another 75% here but that just puts it back to where it was last summer. It is strictly supply and demand in a thin market. That is Bitcoin's soft part but can also be its strong part because unlike Pets.com, Bitcoin does not have to publish a quarterly P&L statement that had better show good sales and earnings growth.

When inflation and economic crisis hits the US, you could be very right to find that Bitcoin has become the world wide digital gold and is exploding in value.

 

[dozu888]

I raise my hand, yes I lived through and invested through the 2000 bust and I also invested through the 1973-74 crash which was much worse than the 2000 bust.

In '73 I can remember actually thinking that when people realize they could buy the entire McDonalds chain for the price of a Bic Mac, stock prices will stop dropping. There has to be value here at some level. I have read historians say it was worse than the depression of the 30s but has not gotten the historical significance because it did not have the economic crash to go with it and only last 2 years.

So, I am not naive here at 73 years old, I have seen bubbles and reverse bubbles where prices get so low no one can see the value of anything.

For the most part we are in agreement here. 95% of the Crypto space is doggie crap but Bitcoin and Litecoin are not. You have tried to walk it back, but you, yourself, in this thread have admitted that Bitcoin might become the digital gold.

You could be right that Bitcoin could drop another 75% here but that just puts it back to where it was last summer. It is strictly supply and demand in a thin market. That is Bitcoin's soft part but can also be its strong part because unlike Pets.com, Bitcoin does not have to publish a quarterly P&L statement that had better show good sales and earnings growth.

When inflation and economic crisis hits the US, you could be very right to find that Bitcoin has become the world wide digital gold and is exploding in value.

ok

if 95% of the space is doggie crap, then do you see the correlation between them and BTC/LTE? what would be the scenario where BTC/LTE can sustain their prices while only the doggies go to zero? so far everything has been moving together... and you saw in 2000 when pets.com went to zero, the blue chips like AMZN EBAY YHOO didn't stay up there... so the bubble is not only in the doggie crap, it's in the entire crypto space... and the reason that they move together is at the infant stage of this technology, you never know someday when DOGE may actually become the dominating player! back when YHOO was THE engine, who'd know today it's no longer there and Google is the engine.

if you are ready for a 75% drop then I can say nothing more..

but regarding the economic crisis... we already had one in 2008! and what happened to gold? DOWN! and what went up in 2008? USD!

regardless how the gold/silver/btc pushers tout as the go-to asset in a crisis, the reality is whenever there is a flight to safety, the destination is the USD... this is the true gold, backed by the nuclear missiles and carrier battle groups, and more importantly the productivity and innovation and the political system of the US of A... and that is not going to change in the foreseeable future.

The gold/silver/btc pushers keep refer to Venezuela and Argentina and what not 'lookie here, fiat can go to zero'... but they never talk about the true backing behind the USD, that is something that Venezuela and Argentina doesn't have.

Good luck.