Substitute?
Artificial?
It is indeed an investment of a very high tier like Gold but substitute is something which is of the same category but when we are talking about bitcoins and Gold they are way different. But Gold is actually something which is way localized and have a lot of market limitations.
Bitcoins is something of the future and the good thing is we are able to invest in it at present, people who compare gold and bitcoins do think that there is no option available to invest other than traditional Investments , but let us understand the fact that Mining ⛏️ is not Mining 💻 !! Did these people even do a research?
Plus digital gold is Centralized, it's controlled and you don't have 100% ability to make any decision in it's regard so therefore I do not think that it's even comparable to decentralized bitcoins where we can do whatever we want without any middle party. There is no waiting time to sell and hold the stocks also. But some companies are trying to control it like that which honestly makes me uneasy.
Topic: Charlie Munger: "Bitcoin is an artificial substitute for Gold" - page 3. (Read 341 times)
It's always compared to gold years ago and the first one was digital gold or new gold in this age. And for those old successful investors, they really won't be able to catch up with the tech stocks because they're living traditionally and don't understand what's in it.
I guess after just a few years from now, with all of those negative statements from these popular and successful investors who have said negatively about bitcoin, they'll change.
I guess after just a few years from now, with all of those negative statements from these popular and successful investors who have said negatively about bitcoin, they'll change.
because in their hearts Charlie and Warren recognized Bitcoin and the future of crypto assets. maybe they were both just embarrassed to say it.
Uh, I don't think so. I have great respect for both of them, and they know what they're doing and they don't need to get involved in an asset that's as unproven and volatile as bitcoin. They stick to what they do best, which is value investing. Everyone here is bullish on bitcoin, but I always keep in mind that it's like an echo chamber on the forum most of the time, and that's how bubbles form. Warren Buffett didn't invest in internet stocks when they were going crazy in the 90s, and he missed out on making some very easy money. He also missed out on the huge crash in April 2000. Again, he knows what he's doing and so does Charlie Munger.Regarding Munger's comparison of bitcoin to gold, it seems to me that's a sentiment that's been floating around for years. I'm thinking about how many threads I've seen asking which is better or otherwise arguing how bitcoin and gold are similar, and there have been so many of those it's ridiculous. Ultimately it doesn't matter what any one person thinks (even if it's a brainy investor like Munger); bitcoin and gold do have some similarities, but they're completely different things.
I don't think bitcoin was created for the purpose of replacing previous payment system like gold or fiat. Bitcoin was created to help users manage their own money without the interference of any government and authorities. Bitcoin is also not made to compete with other investment asset, pure bitcoin is a decentralized payment system. We have a different innovation on bitcoin from the banking system. Let him continue his thought and belief, we know that bitcoin is more useful than just a new currency phenomenon.
I think bitcoin is a digital asset more than a gold in digital gorm, for instance
+ Gold biggest value is that of it's physical appearance, in time past it was kept solely for beautification and in possession of the very wealthy, who did not have any intention to sell, I think bitcoin isn't like that.
+ The rate of Gold increase and it's decrease is lesser than that of Bitcoin's increase and decrease.
Although I think if bitcoin was to be in physical form or appearance it should be in Gold form just to show it's worth and value.
+ Gold biggest value is that of it's physical appearance, in time past it was kept solely for beautification and in possession of the very wealthy, who did not have any intention to sell, I think bitcoin isn't like that.
+ The rate of Gold increase and it's decrease is lesser than that of Bitcoin's increase and decrease.
Although I think if bitcoin was to be in physical form or appearance it should be in Gold form just to show it's worth and value.
That's not the most interesting quote in that interview IMO. He stated:
"Bitcoin won't be the medium of exchange for the world." This is still too premature if he thinks BTC cannot be developed to have fast transactions and low fees. The best thing about technology is, it can rapidly change.
I think we're very, very far away from the moment when low fees and fast confirmations are going to be a constant reality. Remember that anything coming up as a new proposal for BTC is going to need at least a few months, if not years, to be added for real to the protocol - and even if the new stuff is considered safe enough regarding potential flaws, there is a very strong and large audience of Bitcoin maximalists which will oppose the proposed feature(s). This will end up as a yet another fork. BTC vs BCH reloaded. "Bitcoin won't be the medium of exchange for the world." This is still too premature if he thinks BTC cannot be developed to have fast transactions and low fees. The best thing about technology is, it can rapidly change.
That's not the most interesting quote in that interview IMO. He stated:
"Bitcoin won't be the medium of exchange for the world." This is still too premature if he thinks BTC cannot be developed to have fast transactions and low fees. The best thing about technology is, it can rapidly change.
"The unspeakable in pursuit of the uneatable." Not sure what it means. I think it means bad people chasing useless stuff.
About gold, he is not a gold bug, so ask Schiff instead
"Bitcoin won't be the medium of exchange for the world." This is still too premature if he thinks BTC cannot be developed to have fast transactions and low fees. The best thing about technology is, it can rapidly change.
"The unspeakable in pursuit of the uneatable." Not sure what it means. I think it means bad people chasing useless stuff.
About gold, he is not a gold bug, so ask Schiff instead
I wouldn't say that bitcoin is the artificial substitute for gold as there is a cryptocurrency that is the real artificial substitute for gold. If bitcoin is really the artificial substitute then why does bitcoin is not accepted in some country since gold is accepted by all people. Some people are even hiding from their government that they own some bitcoin.
Let them be. We'll see where they will move their assets with this prolonged pandemic and continued fiat printing.
...I find it funny that Charlie seems to have mellowed a bit on it, I'm sure he has labelled it evil in the past..
And here I am thinking he stepped it up a notch from Peter's "BTC is a fool's gold" by not only calling it substitute but also artificial hehe. I tried to search but what came up was rat poison and not evil.
and it will be more dangerous if your house is full of gold, robbers will feel attracted to enter. whereas in bitcoin when the thieves enter, what will they take. secret seed? while you keep it in your head or on a piece of personal note paper. would a thief be suspicious? of course not !!!!
Charlie and Warren at the age of getting older still insist that they don't want to accept and realize everything. maybe they don't have an heir who likes bitcoin? need to be questioned. because in their hearts Charlie and Warren recognized Bitcoin and the future of crypto assets. maybe they were both just embarrassed to say it.
Charlie and Warren at the age of getting older still insist that they don't want to accept and realize everything. maybe they don't have an heir who likes bitcoin? need to be questioned. because in their hearts Charlie and Warren recognized Bitcoin and the future of crypto assets. maybe they were both just embarrassed to say it.
The clip over at Youtube: https://www.youtube.com/watch?v=2Zh_9cBQSYU
While I have great respect for Charlie Munger and Warren Buffett, it feels like they have missed the boat on Bitcoin - leaving a lot of money on the table as it were. They have famously avoided tech stocks until investing in Apple relatively late and it seems they have gotten increasingly risk adverse in their old age. Personally I think that Bitcoin is an artificial substitute for gold and that is actually a good thing. Having some gold coins myself during Covid, I have sold them face-to-face in the past but most businesses were closed during this time and it simply doesn't feel safe sending such high value items through the post - Bitcoin does not face such a problem. Of course Gold has practical physical world uses as well, but the majority is kept in the form of jewelry or investment grade forms. I find it funny that Charlie seems to have mellowed a bit on it, I'm sure he has labelled it evil in the past..
While I have great respect for Charlie Munger and Warren Buffett, it feels like they have missed the boat on Bitcoin - leaving a lot of money on the table as it were. They have famously avoided tech stocks until investing in Apple relatively late and it seems they have gotten increasingly risk adverse in their old age. Personally I think that Bitcoin is an artificial substitute for gold and that is actually a good thing. Having some gold coins myself during Covid, I have sold them face-to-face in the past but most businesses were closed during this time and it simply doesn't feel safe sending such high value items through the post - Bitcoin does not face such a problem. Of course Gold has practical physical world uses as well, but the majority is kept in the form of jewelry or investment grade forms. I find it funny that Charlie seems to have mellowed a bit on it, I'm sure he has labelled it evil in the past..
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