Topic: Do you think Buffett was right? (Read 11668 times)

MasterCard Send debuts as faster alternative to ACH payments

http://www.mobilepaymentstoday.com/articles/mastercard-send-debuts-as-alternative-to-ach-payments/

https://www.youtube.com/watch?v=ypTMglmIsjE

I'm also a strong believer in Bitcoin, but concerning your argument, people might say that a regular currency "at least" has the backing of a respective economy, government, or even military. With Bitcoin, and gold actually as well, it only comes down to the fact that the supply is limited and people agreed that it has value. The intrinsic value of gold is much lower than its actual market price(!)

No. He's right. Bitcoin is simply a way of transmitting money. Fiat is also a way of transmitting money. Money is simply a concept. It's all in out minds. You can't hold money, and you can't see money. Bitcoin is (just like fiat) a token that represents money, and its a means of transferring money, but it's not money itself.

Exactly. That's also the reason why we're still not able to put a definitive tag onto Bitcoin and have trouble actually deciding what it is. It has completely new attributes, and also consists of attributes that haven't occurred with a single asset at the same time. Highly interesting times, indeed!

I don't think it's a flawed analogy.

First, let's make checks analogous to Ripple transactions, then compare BTC to Ripple.

Ripple is essentially a more convenient way of passing around checks.  In the Ripple network, XRP the on-network currency, was designed specifically to have a low value because the currency is really just there as a transaction 'lubricant,' so-to-speak.  The value of XRP needn't be valuable lest it be redundant.  It's simply a mechanism that facilitates the transfer of value in the form of IOUs (like checks).

Both the Bitcoin network and the Ripple network serve similar purposes -- to provide a more effective means of transferring value.  The fact that BTC as a currency is intended to also function as a store of value (unlike XRP) doesn't necessarily mean anything.  Just because something is intended to be a certain way doesn't mean it will actually be best suited for that purpose.

It doesn't matter whether BTC is worth $1 or $10,000 -- the network maintains its purpose regardless of the value of BTC.  To this extent, it can certainly be argued that BTC isn't inherently very valuable.  Checks, and also the BTC and XRP networks, all serve the purpose of transferring value (or debt entitlement...whatever).  All three can serve this purpose just fine without a valuable on-network currency.

Adding my two cents, I think there actually 'is' inherent value in BTC, but this value wouldn't be recognized by Buffet anyway because it's something that's extremely difficult to quantify.  To the rest of the world, a socially accepted form of currency that is not dependent upon 3rd-party trust *is* very valuable to many people.  Buffet has no need for such a thing.

Bitcoin wasn't designed with any "use" of it in mind as far as I know. It can be used as anything you want. Speculation, holding of wealth, treat it like an asset or like an actual currency. That is the beauty of it. Of course, its currency-like features are what makes it unique.

I guess we're coming back to this quote time and time again. Thing is: I do believe that he does get the idea behind Bitcoin, but I think he underestimates the real value of a single commodity everyone agrees on. Why does Gold have such a high value? Due to its intrinsic value!? - not a chance!

Don't think much people here are impressed with that. The Google definition of "safe" means nothing as you still are exposed to everything bad related to fiat currency.

With Bitcoin I own and hold my funds, and they are securely stored and only accessible by me. No government or service can freeze it, seize it, or entirely close it down.

Soemthing like that it seems lol. The beauty of Bitcoin is you have choices over imposition: You can be your own bank, or if you dont trust yourself, you can let a 3rd party to take care of them if you trust the more than you trust yourself (for example Xapo acts as a bank).

What? Do they want to become a bank?

meh, first thing I thought was Ripple, and I was right

Google Wallet just got a lot safer

"Google Wallet will now be FDIC-insured, which means Google users’ money is now a whole lot safer"

https://finance.yahoo.com/news/google-wallet-venmo-paypal-fdic-insurance-215842545.html

MIT Technology Review: A Stanford professor claims to have invented a Bitcoin-like system that can handle payments faster and with more security.

"Stanford professor David Mazières thinks he has a faster, more flexible, and more secure alternative. If Mazières is correct, his technology could make digital payments and other transactions cheaper, safer, and easier—particularly across borders."

Dan Boneh, a Stanford professor who did not work on Mazières’s system but has reviewed it, says that SCP avoids some security limitations of Bitcoin. “The security proposition of Bitcoin is that the people who invested in mining infrastructure can be trusted, but that may not be true,” he says. “Here I can choose for myself who to trust.”

http://www.technologyreview.com/news/536641/a-new-competitor-for-bitcoin-aims-to-be-faster-and-safer/

He's objectively wrong, just like anyone that is a anti-Bitcoin. They just listen to him because he's filthy rich.

Tsar Nicholas was rich.

King Louis was rich.

King Charles I was rich.

It worked... until it didn't.

Okay, well if a start up trying to do the whole beat the percentage of transfer rate, then what does bitcoin offer.

Cause its sure as heck its way cheaper, but now its only a way of hiding your identity situation.

1%?!?! What a steal compared to bitcoin!

Richard Branson, Peter Thiel take aim at Western Union

"How it works: TransferWise acts like something of a matchmaker for people looking to send cash overseas. When a customer in the U.S. wants to transfer funds to, say, a relative in the UK, TransferWise receives their cash in dollars and looks for a customer in the UK who happens to be looking to transfer pounds to dollars. Since no bank ever gets involved and money doesn’t actually cross national borders, TransferWise is able to charge very little in the way of fees — just 1% per transaction for U.S. customers., who also get better deals on exchange rates."

https://finance.yahoo.com/news/look-out-western-union-%E2%80%94-a-new-startup-is-making-money-transfers-way-cheaper-202315065.html

Alone the idea that people agree that something has value to begin with is the basis of money itself. Otherwise our beautiful tiny bills I cotton wouldn't have any vale at all And Bitcoin offers this world-wide and independent of any economy or political power!!!

alot of the posters talk about Buffett as though he is unsupported ie has to struggle himself to understand bitcoin. I am sure he has some of the smartest advisors around in his company and will have had reports given to him on bitcoin prepared by both believers and non believers.
Thats why his views are important and why he should be listened to. Sure he will be "biased' towards one way over another but that bias has stood him in good stead over the years. As another poster has said - its not really about the benefits or otherwise of the thing (here bitcoin) but whether the thing will take off (aka adoption)   

FIRST OF ALL We all Use Fit that FACT in Our MIND that Bitcoin IS NOT Design FOR MAKING LOCAL MONEY BUY SPECULATING

Bitcoin is Design For Use Instead of LOCAL Currency.


So STOP Using this as Personal Speculation Company Share. THIS IS NOT Company Share or Investment Firm.