I wouldn't even bother to respond or react to it, that's basically the best treatment for such statements from these fiat billionaires. They may think that such statements will make a difference and people might stop using Bitcoin and its value may decrease, but hey, we have come a long way from that already and that is not happening anymore.
One can clearly see that his remarks were not actually taken seriously by the general public and they had almost no effect on the price of Bitcoin or the crypto market in general. So, let them say whatever they want, them saying things negative or positive wouldn't really change things around anymore.
Topic: "Bitcoin is Speculation & Gambling" - Warren Buffett Critisize (Read 329 times)
Warren Buffett might be correct that Bitcoin is gambling since you are willing to risk your money when you hold your BTC to earn profit. Gambling is also taking risk for the result you desired the most. Anyway, if they spread comments like that then it's much better to ignore and let people decide if they want to be in CRYPTO or not (for those people who haven't been in crypto) and let the other decide if they want to stay in crypto or not. In short, don't force other people who doesn't want to or those who are not interested.
It all depends on each person's decision whether to get into crypto or not. Gambling is more synonymous with guessing and luck, but in Bitcoin it is not entirely so.
Those who do not have the knowledge will indeed seem to only enter according to their feelings without any analysis.
Being a speculative asset may still be a bad view for some people, but in the current use of Bitcoin there have been real adoptions made even though some governments prohibit it.
-snip-
This could be very much against his belief, and I can understand that. I disagree, of course, I love it, but that doesn't mean I won't respect his opinion.
Before Bitcoin existed Warren Buffet was already a senior investor so it is no wonder that he continues to oppose Bitcoin because his belief in Bitcoin is different from the belief in the investments he makes in some of his companies. This could be very much against his belief, and I can understand that. I disagree, of course, I love it, but that doesn't mean I won't respect his opinion.
Despite continued criticism by Warren Buffet, Bitcoin is still a digital asset that is in demand by modern society today, even growing.
and it is common that the risk of getting into Bitcoin or crypto is quite large due to high volatility.
As crypto users, we must also be aware of that.
Called speculation or as a gambling scheme it is the view of each person.
He is sort of right while being wrong. I mean let's face it, this dude is a 90+ year old guy who has made an insane amount of wealth, more wealth than his entire bloodline could ever spend unless they make a silly mistake and just crash it if they live a normal life, this is the amount of money that will not end until the end of time, that's how much he got rich from being an investor. So when he says something, he says it out of nowhere, he says what he truly believes and actually knows. Yes, it is true that Bitcoin doesn't have an instinct value, because it is not a business, he invested in companies so far, so when something doesn't have a base value that makes him disregard it, and we are the ones that give it any value at all. This could be very much against his belief, and I can understand that. I disagree, of course, I love it, but that doesn't mean I won't respect his opinion.
Warren Buffett might be correct that Bitcoin is gambling since you are willing to risk your money when you hold your BTC to earn profit. Gambling is also taking risk for the result you desired the most. Anyway, if they spread comments like that then it's much better to ignore and let people decide if they want to be in CRYPTO or not (for those people who haven't been in crypto) and let the other decide if they want to stay in crypto or not. In short, don't force other people who doesn't want to or those who are not interested.
When Warren Buffet speaks, believe me bitcoin is in good shape and he is being threatened again with it 
His condition remains the same as always because he is anti bitcoin and there is nothing to comment on because it will not be very useful even if we reveal the data and the fact that bitcoin price is quite soaring in the last 2 months.
There is no need to do anything about his statement because no matter how hard we give a rebuttal in the end we are just like fools arguing with those who do not want to accept the argument.
His condition remains the same as always because he is anti bitcoin and there is nothing to comment on because it will not be very useful even if we reveal the data and the fact that bitcoin price is quite soaring in the last 2 months.
There is no need to do anything about his statement because no matter how hard we give a rebuttal in the end we are just like fools arguing with those who do not want to accept the argument.
Everything related to finance is speculative and gambling
Yeah, including stocks that Warren Buffett has it his portfolio, perhaps for him it's the risk involved that's why he compare it to gambling. And if it is gambling to us then majority of us are in the winning side, specially those long terms holders who knows when to sell at the right time.
The thing is that he don't want and doesn't want to understand Bitcoin, and with that his opinion is irrelevant because how can you comment on something that you don't even understand?
Some people are listening from what he said because of status in life.
But it is true, if you are not well-conversant with the technology, how can you give a valuable comment on the matter?
Stocks and other financial options have some sort of speculative aspect as for sure no one knows exactly what will happen to their holdings.
Just like with btc or crypto market in general, we are all speculating to where our coins will head to.
But high likely that he is talking about the risks involve and right now, btc is considerably a high risk investment.
Everything related to finance is speculative and gambling
Yeah, including stocks that Warren Buffett has it his portfolio, perhaps for him it's the risk involved that's why he compare it to gambling. And if it is gambling to us then majority of us are in the winning side, specially those long terms holders who knows when to sell at the right time.
The thing is that he don't want and doesn't want to understand Bitcoin, and with that his opinion is irrelevant because how can you comment on something that you don't even understand?
I would like to call him a fool but he isn't, at least when it comes to businesses
That’s the whole point! Bitcoin is not a business and it is also a modern technology. Warren buffet is not a fool when it comes to businesses, but he certainly is when it comes to modern technologies.
warren buffet does not invest in assets. he invests in businesses.
his strategy is if an asset plays good the business around the asset plays good too..
if the asset plays bad he dont care becasue he still owns parts of the business and he can sell the business parts off to make good.
his mindset has never been to invest in assets. he invests in businesses of assets as a step-back protection of his investment. to be one step away from risk. and thats how he has been successful
and yes he doesnt see bitcoin he only sees FTX where FTX would have been a bad investment, but FTX main fall was its own craptoken FTT not bitcoin. bitcoin did not cause the fall of FTX FTT did
Warren Buffett's hostility to Bitcoin is not new and negative commentators on Bitcoin will never find its positive side. Bitcoin is highly volatile and many people have been able to fulfill their dreams through it and there are many who have made high returns in a very short of time. due to which he may called Bitcoin as a gambling token. But this fact is not acceptable to Warren Buffett. For this reason he advised to the authority to stop it's using form the way china stop it. But I took his comments more positively. I prefer tokens that have the power to change the wheel of fortune certainly that is my most wanted desire.
I would like to call him a fool but he isn't, at least when it comes to businesses
That’s the whole point! Bitcoin is not a business and it is also a modern technology. Warren buffet is not a fool when it comes to businesses, but he certainly is when it comes to modern technologies.
I would like to call him a fool but he isn't, at least when it comes to businesses, the issue that Warren has with Bitcoin is a lack of trust and understanding, this man knows nothing more than making money from companies and businesses, I don't blame him for hating Bitcoin, he even called Bitcoin a token, we all know that Bitcoin is not a token. People like him don't even believe in any technology, I doubt this man can do well on the computer or run any Node online that a young student can easily run today, this man is oldy, let's just accept that this is why he doesn't believe in Bitcoin.
Warren buffet was a well respected investor that had great ideas in the past. Now he is an old men that does not even own an smartphone. If you you consider that you can quickly understand why he can not understand Bitcoin. It is not his fault, it is simply that he is a case for the retirement home.
Everyone can give their opinion about Bitcoin, including Warren Buffett. Buffett should also know that it's up to the people because if people still want to invest their money in Bitcoin, he can't do anything about it. After all, many people can still be responsible for investing in Bitcoin.
But if Buffett wants to learn a little about Bitcoin, I think his view on Bitcoin will change and he will invest his money in Bitcoin even though he previously said Bitcoin is a gambling coin. Let's hope it doesn't affect newbies who just joined Bitcoin.
But if Buffett wants to learn a little about Bitcoin, I think his view on Bitcoin will change and he will invest his money in Bitcoin even though he previously said Bitcoin is a gambling coin. Let's hope it doesn't affect newbies who just joined Bitcoin.
...
Modern currency is just a proxy for military power + natural resources. USD/Yuan/Euro are the strongest currencies because each region controls the worlds resources and dominate the geopolitical sphere. Even Russia can have a strong currency solely backed by energy exports even though every other sector of the economy has receded post war.
Warren Buffet has made his money through the speculative stock market, so I find the irony palpable. If he considers Bitcoin to be gambling, then his fortune made via the stock market must follow the same principle because the stock market is a zero sum game.
He hates bitcoin like all really rich, old boomer, bank & legacy finance guys do. People don’t like what they don’t understand. Let’s be honest, who cares what he thinks any way, he probably won’t be alive to see the next two halvings.
Warren Buffett has got extremely wealthy by doing things that he’s very good at, investing in stocks. He doesn’t need to learn about & master bitcoin, why would he. All old people hate new tech, it scares them & tgey don’t like learning new things.
Bitcoin is going mainstream & tgere’s nothing people like him can do about it.
Warren Buffett has got extremely wealthy by doing things that he’s very good at, investing in stocks. He doesn’t need to learn about & master bitcoin, why would he. All old people hate new tech, it scares them & tgey don’t like learning new things.
Bitcoin is going mainstream & tgere’s nothing people like him can do about it.
The value of fiat money isn't really decided by buyers and sellers. A country can set a strict regulated value of its currency for the national market, significantly disregarding the international value. And if a currency loses tons of value internationally, it can lose less value inside the country for products that aren't imported there. So the value of fiat is much trickier than the value of Bitcoin because fiat is tied to particular states and can be regulated (although sometimes not very successfully). What I do agree with is that it's nothing like gambling, trying a roulette wheel.
Also, if people could place a bet on a wheel and wait over and over with the same bet (without spending more money) until they win the bet, I'm sure many would do it. And that's what happens with Bitcoin: you can invest and just wait through the bearish times until you make profit.
Also, if people could place a bet on a wheel and wait over and over with the same bet (without spending more money) until they win the bet, I'm sure many would do it. And that's what happens with Bitcoin: you can invest and just wait through the bearish times until you make profit.
As said many times the usual stock market traditional investors can't accept the growth of bitcoin especially the ROI which is atleast 10 times higher so they realise that they missed the train and few managed to invest even later cause they understand in future the value will be too high compared to current value but few like Buffet stubborn to change his views no matter what but it's his choice and he doesn't understand the blockchain technology that's it.
According to Warren Buffett, Bitcoin is called a gambling coin because it does not have a fixed value. Warren Buffett cares more about paper money or fiat than Bitcoin, but one thing is very important that Warren Buffett cares about the dollar in this satirical/Critisized interview.
Does the dollar have a fixed price?, I noticed that the value of the dollar is decreasing from time to time or from year to year, yes he really cares about the dollar but I think the old man will regret it if dedollarization really happens at his age or at the time he was alive, it's possible that if dedollarization did happen I think it would cause a depreciation of much more than what we feel today in the dollar.Quote
How would you respond to Warren Buffett's anti-Bitcoin comments?
Who cares about that geezer LOL.but I hope that with bitcoin critics such people can have a downward effect just this time, I feel that many of the previous key bitcoin prices missed and lagged at some bitcoin strong support prices.
Buffet only invests in assets that generate value. He hates speculative trading, and Bitcoin is the pinnacle of speculation. Buffet will never buy Bitcoin, because it's impossible to predict where it will go next. It can crash to $100 tomorrow just as easily as it can rise to $1,000,000.
It's technically impossible for bitcoin to crash to $100, or raise to 1 million in a day. I know Buffett might not know that, but members of this forum should.
I also thought bitcoiners see it as much more that speculation. When I buy bitcoin I buy the first ever decentralized commodity in the world. Owning it is much more than speculation, it's showing you're against the establishment. You become a sovereign citizen, able to take your wealth and move where it fits you, without being taxed on it.
Quote
It's indeed close to gambling, but it's not gambling, because in gambling the odds are known, fixed and are stacked against the player. In Bitcoin no one has the slightest clue of what its value should be. Everyone is just projecting their feelings when they make price predictions.
It's value is determined by a number of factors, like the cost of energy needed to mine it. Saying that it's similar to gambling is pure ignorance.
Not all of us make price predictions, not all of us care about the price, but pricing it at $100 is again ignorant.
Buffet only invests in assets that generate value. He hates speculative trading, and Bitcoin is the pinnacle of speculation. Buffet will never buy Bitcoin, because it's impossible to predict where it will go next. It can crash to $100 tomorrow just as easily as it can rise to $1,000,000. It's indeed close to gambling, but it's not gambling, because in gambling the odds are known, fixed and are stacked against the player. In Bitcoin no one has the slightest clue of what its value should be. Everyone is just projecting their feelings when they make price predictions.
I hope that newbies will not take Buffett's criticism towards Bitcoin as a way for them not to approach Bitcoin, and still give themselves some time to learn it.
I mean we've heard numerous criticism towards Bitcoin. Since I started way back 5 years ago in learning Bitcoin, I've already heard some bad news on it. In 2017, back when I was a newbie still I've heard that China is banning ICO's, and at that time its hype is at its highest. Of course it affected Bitcoin, but not on the way that most people expected. Instead of it going down, it went up even though there are many negative news at that time. Over the years, there are many negative news, negative criticism that has been said towards Bitcoin, but look where it is now. Many people are still interested in investing into it, and it's kind of ironic that he said negative things about it, but the price went up after he said it.
Warren Buffett is one of the most popular investors in the world, and I'm following his footsteps with regards to investing into stock market, but I will not follow what he's saying with regards to crypto, and I'd rather ignore it.
I mean we've heard numerous criticism towards Bitcoin. Since I started way back 5 years ago in learning Bitcoin, I've already heard some bad news on it. In 2017, back when I was a newbie still I've heard that China is banning ICO's, and at that time its hype is at its highest. Of course it affected Bitcoin, but not on the way that most people expected. Instead of it going down, it went up even though there are many negative news at that time. Over the years, there are many negative news, negative criticism that has been said towards Bitcoin, but look where it is now. Many people are still interested in investing into it, and it's kind of ironic that he said negative things about it, but the price went up after he said it.
Warren Buffett is one of the most popular investors in the world, and I'm following his footsteps with regards to investing into stock market, but I will not follow what he's saying with regards to crypto, and I'd rather ignore it.
How would you respond to Warren Buffett's anti-Bitcoin comments?
Honestly, I hope what he says and what he does will be the same. I mean, I'm afraid he's always saying negative things about bitcoin but behind our back, he's buying cheap bitcoins, and one day, when bitcoin hits $1 million, he says he holds thousands of bitcoins. Don't believe what rich people say because they just want the rich world only themselves, and they don't want too many rich people.
He can say anything about bitcoin, but as long as he doesn't buy bitcoin, I will always support him. Bitcoin should not fall into the hands of these rich people because they will get richer and richer, and the world will be more divided.
Warren Buffet is a sentimental person,he keeps on with his critics on bitcoin, but still bitcoin has proven him wrong ever he became an anti-bitcoin agent. It is such people that goes around spreading the FUD and deceiving those that don't have the knowledge of how bitcoin works,that fiat currency is more valued to bitcoin and safer. I am happy that this year USD depreciated due to high rate of inflation, and some banks also collapse. All these incidents have proved him wrong about his hate on bitcoin and praises of fiat and banks. It is clear that he is talking from an arcade mentality because with the recent catastrophe faced by the economy, some investors are adopting bitcoin to secure the value of their funds.
One thing I know about rich people is that they aren’t going to give you financial advice for free. Warren Buffet has always been a strong critic of bitcoin and I don’t think he’s going to stop now. Buffet is old, talking about bitcoin keeps him relevant amongst young people. This interview was to reassure Americans that the banks are still a safe place to keep your money. I think he’s sentimental about the issue but let’s look at the historical data of bitcoin before making their decision.
And the rich don't want others to become as rich as they are, so it's understandable that they speak ill of an asset that can make someone else rich quickly. If it were me, I would do the same, I don't want everyone to be rich because then the world will be unstable. Most of us are speculating on bitcoin, hoping to get rich quickly, so I have a feeling what he's saying is talking about us, not bitcoin.
And it is important to note that anything can be used as money and it will have value. If people in my country refuse to use the national currency as a medium of exchange and decide that human hair is now the means of exchange, human hair will immediately start having value. If people decide to use Bitcoin, its value will also go high and the government can do nothing about it. If the government decides to give its citizens freedom to choose the currency they want to transact with, many will choose Bitcoin and the government knows that's why they are using force to enforce compliance to their bad policies.
Another old man yells at cloud once again, nothing new here. We don't care about what he says anyway, Bitcoin wasn't meant for him in the first place I think.
How would you respond to Warren Buffett's anti-Bitcoin comments?
Buy more Bitcoin. Buying more Bitcoin each time this negative comments are made towards Bitcoin is the best respond and then keep on holding until those bitcoin are worth more in the future before selling.
Warren Buffett doesn't like Bitcoin and he has been making that clear from the first time he was interview on Bitcoin. I remember some public figure in the Bitcoin community requested to take him to dinner to explain what Bitcoin was and I think he declined.
Warren Buffett still believe in the traditional way of investing that has to do with investing in things like stock real estate. He has a hard time believing in new technology as well so him criticizing Bitcoin isn't a new habit of his.
How would you respond to Warren Buffett's anti-Bitcoin comments?
Quote
In the company's annual general meeting of shareholders, Saturday (30/4/2022) United States time, Buffett said that bitcoin is not a productive asset and does not produce anything real.
What does bitcoin mean that it doesn't produce anything real, what do you mean real results?, even though if you think about it deeper, bitcoin always produces something real, with the results obtained from bitcoin, it can be made into something real. So what is meant by not producing something real, what does that mean, it's clear that bitcoin is real, and something real, will definitely produce something real.and about unproductive bitcoin, that's also a big mistake, because so far bitcoin has always been an investment asset that continues to be productive.
Buffet doesn't seem to really fully understand bitcoin, because the opinion expressed by Warren Buffet looks like random speech, without being based on specific research. So I don't really care about what comes out of his mouth, because people's opinions are always different, so if Waren Buffett doesn't like bitcoin, go ahead, I don't think about it too much, and it won't make me switch from bitcoin.
One thing I know about rich people is that they aren’t going to give you financial advice for free. Warren Buffet has always been a strong critic of bitcoin and I don’t think he’s going to stop now. Buffet is old, talking about bitcoin keeps him relevant amongst young people. This interview was to reassure Americans that the banks are still a safe place to keep your money. I think he’s sentimental about the issue but let’s look at the historical data of bitcoin before making their decision.
And the rich don't want others to become as rich as they are, so it's understandable that they speak ill of an asset that can make someone else rich quickly. If it were me, I would do the same, I don't want everyone to be rich because then the world will be unstable. Most of us are speculating on bitcoin, hoping to get rich quickly, so I have a feeling what he's saying is talking about us, not bitcoin.
Warren Buffet did not like Tech companies and he publicly said about that many decades ago. Recent years, Berkshire Hathaway invested into Apple which shows that Warren is a person who can change his mind if he finds good reasons for it.
I am not shocked if Warren and Berkshire Hathaway invest in to Bitcoin and cryptocurrency in future. If they can invest in Apple, they can invest in cryptocurrency. If they do that, Bitcoin will surely be their first choice. With their big capital, they will want to choose a cryptocurrency that is safest, with least risk and has big trading volume enough for them to enter and exit with their big capital without waiting many days or weeks to complete their deal.
Warren and Berkshire Hathaway don't have to directly invest in Bitcoin but can invest in companies that mine Bitcoin or invest in Bitcoin like Micro Strategy.
I am not shocked if Warren and Berkshire Hathaway invest in to Bitcoin and cryptocurrency in future. If they can invest in Apple, they can invest in cryptocurrency. If they do that, Bitcoin will surely be their first choice. With their big capital, they will want to choose a cryptocurrency that is safest, with least risk and has big trading volume enough for them to enter and exit with their big capital without waiting many days or weeks to complete their deal.
Warren and Berkshire Hathaway don't have to directly invest in Bitcoin but can invest in companies that mine Bitcoin or invest in Bitcoin like Micro Strategy.
Warren Buffet has for a long time been anti Bitcoin publicly, it's no surprise he still finds a way to drop a comment or two on Bitcoin even if that is not directly related to the question asked. It's a sort of obsession many typical wealthy people have, they are surprised the network has not collapsed yet as they predicted.
If I were to guess — 90% of the time it's the journalists asking him about Bitcoin hence his comments (Bitcoin-related hate gets a lot of shares). In this case though, it kinda fits towards the topic — which is gambling, so it's not like he just randomly mentions Bitcoin willy-nilly.
a $10 bank note has a underlying value of the cost to print a bank note (paper+ink ($0.14)) its then the laws of utility (tax/min wage/debt/fines) that then speculate above that to give it values(emotional/functional utility/desire) thus giving it a price of $10 or 7 loaves of bread
its numeric value is so low because someone somewhere on the planet can get it for that low amount. so thats its underlying intrinsic value
bitcoin has a underlying value of the cost of mining. cheapest on planet being ~$18k/btc this year, $15k in 2022. then its the rules of code that give it values(emotional/functional utility/desire) which then speculate such utility/desire to give it a price above value
its numeric value is so low because someone somewhere on the planet can get it for that low amount. so thats its underlying intrinsic value
speculation and PRICE variety, are things ABOVE value.. price is not value
US bank note value $0.14.. price $10.. speculation 7142.86%
Gold value $1k.. price $2k.. speculation 200%
bitcoin value $18k.. price $31k.. speculation 172%
a $10 bank note in 2012 bought 10 loaves of bread
a 1btc($10 price) in 2012 bought 10 loaves of bread
a $10 bank note in 2023 buys 7 loaves of bread
a 1btc($31k price) in 2023 buys 21800 loaves of bread
its numeric value is so low because someone somewhere on the planet can get it for that low amount. so thats its underlying intrinsic value
bitcoin has a underlying value of the cost of mining. cheapest on planet being ~$18k/btc this year, $15k in 2022. then its the rules of code that give it values(emotional/functional utility/desire) which then speculate such utility/desire to give it a price above value
its numeric value is so low because someone somewhere on the planet can get it for that low amount. so thats its underlying intrinsic value
speculation and PRICE variety, are things ABOVE value.. price is not value
US bank note value $0.14.. price $10.. speculation 7142.86%
Gold value $1k.. price $2k.. speculation 200%
bitcoin value $18k.. price $31k.. speculation 172%
a $10 bank note in 2012 bought 10 loaves of bread
a 1btc($10 price) in 2012 bought 10 loaves of bread
a $10 bank note in 2023 buys 7 loaves of bread
a 1btc($31k price) in 2023 buys 21800 loaves of bread
It is very obvious that Warren Buffett is Ann who does not like Bitcoin at all and he likes talking againat Bitcoin telong people not to see reason of investing in it. Everyone has opinion to say what ever they think or like about Bitcoin that is why I am not bothered to see that buffet does not like Bitcoin at all, including his entire family.
I think they just need to back off from this claim of Bitcoin not having an intrinsic value to people. There are people who had been rich just by holding Bitcoin so his claim does not have a logical facts.
Yes, this is a free market on which everyone could really be able to give out and share their own opinions which we know that it cant be wrong nor it cant be right.Its not really that shocking thatI think they just need to back off from this claim of Bitcoin not having an intrinsic value to people. There are people who had been rich just by holding Bitcoin so his claim does not have a logical facts.
there would be those people who would really be that bearish when it comes to Bitcoin or someone who do really loves to criticize which is mostly into those people who are really that billionaires out of those traditional investments that we do know and heavily relying and depending on banking system which it isnt really that shocking that they would really be having that kind of
feedbacks and opinions but its not something that we should be minding off specially for us who do support Bitcoin mainly.
It is very obvious that Warren Buffett is Ann who does not like Bitcoin at all and he likes talking againat Bitcoin telong people not to see reason of investing in it. Everyone has opinion to say what ever they think or like about Bitcoin that is why I am not bothered to see that buffet does not like Bitcoin at all, including his entire family.
I think they just need to back off from this claim of Bitcoin not having an intrinsic value to people. There are people who had been rich just by holding Bitcoin so his claim does not have a logical facts.
I think they just need to back off from this claim of Bitcoin not having an intrinsic value to people. There are people who had been rich just by holding Bitcoin so his claim does not have a logical facts.
One thing I know about rich people is that they aren’t going to give you financial advice for free. Warren Buffet has always been a strong critic of bitcoin and I don’t think he’s going to stop now. Buffet is old, talking about bitcoin keeps him relevant amongst young people. This interview was to reassure Americans that the banks are still a safe place to keep your money. I think he’s sentimental about the issue but let’s look at the historical data of bitcoin before making their decision.
hero member
Activity: 770
Merit: 538
Leading Crypto Sports Betting & Casino Platform
OP, these same thread have been created before yours, a person of your caliber should know how to use the forum search to check if topic you want to create has already been created to avoid committing spam.
How would you respond to Warren Buffett's anti-Bitcoin comments?
I would not convince flies to believe that flowers are more beautiful than mud. But some explanation of the myth must be answered with this one. So don't convince Warren Buffett about bitcoin, it's useless.Bitcoin has no intrinsic value (unlike some other things)
Quote
Bitcoin has no intrinsic value (unlike some other things)
This is simply not true. Each bitcoin gives the holder the ability to embed a large number of short in-transaction messages in a globally distributed and timestamped permanent data store, namely the bitcoin blockchain. There is no other similar datastore which is so widely distributed. There is a tradeoff between the exact number of messages and how quickly they can be embedded. But as of December 2013, it's fair to say that one bitcoin allows around 1000 such messages to be embedded, each within about 10 minutes of being sent, since a fee of 0.001 BTC is enough to get transactions confirmed quickly. This message embedding certainly has intrinsic value since it can be used to prove ownership of a document at a certain time, by including a one-way hash of that document in a transaction. Considering that electronic notarization services charge something like $10/document, this would give an intrinsic value of around $10,000 per bitcoin.
While some other tangible commodities do have intrinsic value, that value is generally much less than its trading price. Consider for example that gold, if it were not used as an inflation-proof store of value, but rather only for its industrial uses, would certainly not be worth what it is today, since the industrial requirements for gold are far smaller than the available supply thereof.
In any event, while historically intrinsic value, as well as other attributes like divisibility, fungibility, scarcity, durability, helped establish certain commodities as mediums of exchange, it is certainly not a prerequisite. While bitcoins are accused of lacking 'intrinsic value' in this sense, they make up for it in spades by possessing the other qualities necessary to make it a good medium of exchange, equal to or better than commodity money.
Another way to think about this is to consider the value of bitcoin the global network, rather than each bitcoin in isolation. The value of an individual telephone is derived from the network it is connected to. If there was no phone network, a telephone would be useless. Similarly the value of an individual bitcoin derives from the global network of bitcoin-enabled merchants, exchanges, wallets, etc... Just like a phone is necessary to transmit vocal information through the network, a bitcoin is necessary to transmit economic information through the network.
Value is ultimately determined by what people are willing to trade for - by supply and demand.
This is simply not true. Each bitcoin gives the holder the ability to embed a large number of short in-transaction messages in a globally distributed and timestamped permanent data store, namely the bitcoin blockchain. There is no other similar datastore which is so widely distributed. There is a tradeoff between the exact number of messages and how quickly they can be embedded. But as of December 2013, it's fair to say that one bitcoin allows around 1000 such messages to be embedded, each within about 10 minutes of being sent, since a fee of 0.001 BTC is enough to get transactions confirmed quickly. This message embedding certainly has intrinsic value since it can be used to prove ownership of a document at a certain time, by including a one-way hash of that document in a transaction. Considering that electronic notarization services charge something like $10/document, this would give an intrinsic value of around $10,000 per bitcoin.
While some other tangible commodities do have intrinsic value, that value is generally much less than its trading price. Consider for example that gold, if it were not used as an inflation-proof store of value, but rather only for its industrial uses, would certainly not be worth what it is today, since the industrial requirements for gold are far smaller than the available supply thereof.
In any event, while historically intrinsic value, as well as other attributes like divisibility, fungibility, scarcity, durability, helped establish certain commodities as mediums of exchange, it is certainly not a prerequisite. While bitcoins are accused of lacking 'intrinsic value' in this sense, they make up for it in spades by possessing the other qualities necessary to make it a good medium of exchange, equal to or better than commodity money.
Another way to think about this is to consider the value of bitcoin the global network, rather than each bitcoin in isolation. The value of an individual telephone is derived from the network it is connected to. If there was no phone network, a telephone would be useless. Similarly the value of an individual bitcoin derives from the global network of bitcoin-enabled merchants, exchanges, wallets, etc... Just like a phone is necessary to transmit vocal information through the network, a bitcoin is necessary to transmit economic information through the network.
Value is ultimately determined by what people are willing to trade for - by supply and demand.
How would you respond to Warren Buffett's anti-Bitcoin comments?
I wouldn't. Anti Bitcoin comments are sometimes best ignored as long as they are not spreading malicious wrong information, like in the case of CSW. Warren Buffet has for a long time been anti Bitcoin publicly, it's no surprise he still finds a way to drop a comment or two on Bitcoin even if that is not directly related to the question asked. It's a sort of obsession many typical wealthy people have, they are surprised the network has not collapsed yet as they predicted.
If I'm for formulate a reply; I would talk about how he tries to instill confidence in bank depositors, that their investment are always safe there and he does not see a system that operates on whims to be unsustainable. And I would ask that he doesn't use Bitcoin to make his interviews more popular.
How would you respond to Warren Buffett's anti-Bitcoin comments?
We have known Warren Buffett to be a bitcoin critic, it is no more new, but bitcoin price has increased significantly since I have known that Warren Buffett is a bitcoin critic. I knew about bitcoin when its price was $7000 to $8000. I knew Buffet to be bitcoin critic at the time too, but bitcoin adoption is reality.Warren Buffett is getting old, he believes in what he does when he was young and successful.
https://twitter.com/SquawkCNBC/status/1646135432982286338?s=19
According to Warren Buffett, Bitcoin is called a gambling coin because it does not have a fixed value. Warren Buffett cares more about paper money or fiat than Bitcoin, but one thing is very important that Warren Buffett cares about the dollar in this satirical/Critisized interview.
But in a tweet replay to Bitcoin Magazine, a gentleman gave a strong response to his satirical interview, which is brought to you all.
Dear Mr. Buffett,
I realised recently money is just intermediate value.
It is value that hasn’t assumed the form of something we can directly use.
So the value of a dollar is not $1–that would be circular.
It is what you can exchange that dollar for. The seller determines this.
Yet if the value of a dollar ever felt immutable, unchangeable, it was due to a web of implicit trust between buyers, sellers, and institutions.
Institutions willing to enforce its value with might and steel.
So the dollar, the most commonly traded instrument in history, never had intrinsic value.
It had exchange value derived from trust and force.
Banks safekeep and bookkeep money. They are exchange hubs.
Their ledgers are codices of exchanges. Of transaction history.
They also make money by issuing loans, but this third function relies on the first two.
Money first roamed the world as cowrie shells, gold and silver, then cash.
It roams bankspace through SWIFT, ACH, whatever networks banks run in the backroom, maybe FedNow in the future.
Bankspace has become a superfluous middle step because we can now network directly with each other.
Cash has become problematic because so much of it has been issued.
Because so much of it has been issued, a lot of it is being spent, in turn driving prices up and lowering that exchange value of a dollar.
Bitcoin is just money on a blockchain
A blockchain is a peer-to-peer exchange network that bypasses bankspace.
As a networked ledger duplicated across multiple nodes, it addresses the need for safekeeping and bookkeeping.
Bitcoin’s like money.
Because it is value in intermediate form, and tradeable for dollars.
Like euros or yen or renminbi.
And its value is ultimately decided by its buyers and sellers, just like money.
And if people counterfeited or issued more Bitcoin, its value would drop in response.
But it was born to have a fixed supply, unlike money.
So it’s not a gambling token.
It has characteristics as a network of value exchange that make it a more stable type of money.
A money native to this reality where mobile devices are ubiquitous.
I realised recently money is just intermediate value.
It is value that hasn’t assumed the form of something we can directly use.
So the value of a dollar is not $1–that would be circular.
It is what you can exchange that dollar for. The seller determines this.
Yet if the value of a dollar ever felt immutable, unchangeable, it was due to a web of implicit trust between buyers, sellers, and institutions.
Institutions willing to enforce its value with might and steel.
So the dollar, the most commonly traded instrument in history, never had intrinsic value.
It had exchange value derived from trust and force.
Banks safekeep and bookkeep money. They are exchange hubs.
Their ledgers are codices of exchanges. Of transaction history.
They also make money by issuing loans, but this third function relies on the first two.
Money first roamed the world as cowrie shells, gold and silver, then cash.
It roams bankspace through SWIFT, ACH, whatever networks banks run in the backroom, maybe FedNow in the future.
Bankspace has become a superfluous middle step because we can now network directly with each other.
Cash has become problematic because so much of it has been issued.
Because so much of it has been issued, a lot of it is being spent, in turn driving prices up and lowering that exchange value of a dollar.
Bitcoin is just money on a blockchain
A blockchain is a peer-to-peer exchange network that bypasses bankspace.
As a networked ledger duplicated across multiple nodes, it addresses the need for safekeeping and bookkeeping.
Bitcoin’s like money.
Because it is value in intermediate form, and tradeable for dollars.
Like euros or yen or renminbi.
And its value is ultimately decided by its buyers and sellers, just like money.
And if people counterfeited or issued more Bitcoin, its value would drop in response.
But it was born to have a fixed supply, unlike money.
So it’s not a gambling token.
It has characteristics as a network of value exchange that make it a more stable type of money.
A money native to this reality where mobile devices are ubiquitous.
Tweet reply from: https://twitter.com/civic_cat/status/1646933596266168320?s=19
How would you respond to Warren Buffett's anti-Bitcoin comments?
Jump to: