Warren Buffett on Bitcoin
- Thread starter clacy
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Direct quote from the upcoming movie: The Doge of Bitcoin alley
Thats great lol
Good point: don't touch shit-coins (keep focus to Bitcoin/Litecoin and your are fine).
Maybe just maybe, some alt-coins will emerge by having some unique property (technically/socially/geometrically or what ever). But stay away for at least 2 years, so it can prove itself.
do you honestly think Bitcoin will be around in 46 years? In 5 years?
I recall similar statements being made about Amazon, email etc. As a technology, cryptocurrency is pretty interesting and I think we will see a lot of awesome things in that space. Early run-up is normal, every new promising tech usually first prompts a bubble and takes a few years to become mature.
As for the value, who knows. I can't predict BTC/USD in a year even to 1sd, but show me someone who can do it for JPY/USD or MXN/USD. As long as it is backed by some faith (in case of state currencies, it's the faith in the government, in case of crypto-currencies it's the faith in the future proliferation and acceptance), it will be chugging along in some shape or form.
Direct quote from the upcoming movie: The Doge of Bitcoin alley
LOL! priceless..
1. Currently (and for the foreseeable future) it is still inflating with a slowing rate, a fact that bitcoiners forget to think about. 3600 extra coins per day adds up to 1.3 million coins a year and that is about 10% inflation. Now as the difficulty grows this will tamper off, so next year it will be 8% or so, the following year 6% and so on.
2. Nobody knows. As I mentioned earlier, Litecoin just beat Bitcoin's 24H trading volume. As long as big entities think it works well as a commodity and speculators think it is worthy to daytrade it, the volume will stay high. But that can collapse due to several things:
a/ A bitcoinkiller comes around and kills the volume.
b/ Another flavour of the month altcoin comes around and temporarily takes away the volume.
c/ Volatility dies down, and with it goes volume.
d/ Government regulation comes around and effectively kills the legal market.
e/ Lots of coins get lost, thus less are available for trading.
etc.etc.
3. In 5-7 years the supply will drop signifficantly, but that itself doesn't have to kill volume. If by then bitcoin establishes itself as a stable and safe payment method/currency, it will just be like any other well established stock/currency...
I think he meant no HUGE intrinsic value, and he was correct...
The freaking thing can be copied in 4 hours*, where is that huge value??? **
*That is how much it took to create Litecoin, what accidentally took over in 24H trading trading volume today
** and don't even come with the network effect, that can be copied/achieved in one day
Why do you continue to say bitcoin can be easily copied and replicated after everyone has already explained to you how stupid that is. The protocol is open source but the brand, infrastructure(exchanges, merchant support, stores, etc..), and the underlying network power that's in place creates a tremendous barrier to entry. Those are facts that have already played out, all those new altcoins people created are fraction of bitcoin's marketcap, many dead on arrival. Even the second most popular - litecoin is just 5% of bitcoin's marketcap after all this time.
It's exactly the same as saying mcdonald has no value because anyone can open a burger joint and serve hamburgers. Even for someone with subpar intelligence such as yourself, this should be obvious.
As to the whole buffet/ponzi/value argument, it has been debated to death, it may or may not. Market will make it clear in a few years, this back/forth is pointless.
Some pointers:
1. If we stay away for 2 years, that means we miss (again!!) the fast growing and exploding phase, meaning hyper profits!! This is the reason why shitcoins have some valuation even if small, because nobody knows which one will take off (and Doge showed that it doesn't really have to have real intrinsic value) and nobody wants to miss the boat.
2. The "maybe" is pretty much a given, that at one point there will be a much better coin than Bitcoin. Why? Because:
a/ There is just too much easy money is in creating a new coin.
b/ Innovation doesn't stop and the dozens of problems what Bitcoin hasn't addressed yet.
Now usually here bitcoiners say: "Well, we could just implement the new innovations into Bitcoin."
This is true, but for any big changes you need consensus, and if I am an outsider making the new, better features I would rather start with my own coin (and possible new wealth) than messing with a coin that is in other people's hands...
now this is priceless.