Buffett is good at what he does, but his track record doesn't mean anything for things he doesn't know. For example, I wouldn't count on him giving good advice on how to play go (an ancient chinese board game). He obviously doesn't understand tech, or doesn't care to understand tech, making his opinions on this matter about as authoritative as your average Joe.
Even if bitcoin fails, his reasons are simply not correct. A lot of people don't understand this concept. You can have the wrong reasons but accidentally hit the right answer. It doesn't make you right, though.
So yes, bitcoin still has a lot of obstacles to overcome. But we should listen to people who actually did their research and critical thinking, rather than famous people.
Bitcoin is based on tech, yes, but that's the minor part of the story. You don't need to understand merkle roots and such to understand Bitcoins use and potential, just as you don't need to understand C, Java or Cobol, or have an knowledge about TCP/IP in order to understand banks and banking; Bitcoin is no different; it's a technology, for certain, but it's use and application are certainly understandable to a layperson who wants to devote more than a couple of minutes to the task;
It's easy to say that Buffett's old and he just doesn't get it, but he's one of the sharpest investment minds out there, understands banking and finance better than anyone here, and unlike the vast majority of people here, who can easily get trapped in the self-reinforcing echo chamber that is here, telling us that the sky is the limit, individual bitcoins could bet worth millions one day, etc... He's a disinterested outside observer, who can offer the most unbiased analysis out there... I'd find much more value in Buffetts words, for instance, than the Winklevoss twins. True, he doesn't spout the party line, but just because you don't like his opinion, that doesn't make it any less valid.
Sure, Buffetts famous. But his fame is solely the result of his success at doing research, thinking critically, and most importantly, investing against the tide.
I'm certain that had Buffett said the exact same thing that he said, except ended it with "Bitcoin's a great idea, and I'm buying some personally", there would be no attacks no the guy, no one saying he didn't do his research, no one saying he's out of touch, or doesn't like tech. But because his opinion differs than what we want to hear around here, its open season.
Why don't you read some of my other posts before forming uninformed assumptions about my opinions and motivations? Sure, I'm bullish on bitcoin's technology, but I've even mentioned myself that I am not a government-fiat hater, I don't blindly believe that bitcoin is the solution to everything. Not going to repeat what I said before, just read some of my posts
https://bitcointalksearch.org/topic/m.10779939 and
https://bitcointalksearch.org/topic/bitcoins-edge-how-will-bitcoin-fight-off-competitors-987258As smart as Buffett is, he just can't learn everything there is about the world to take advantage of every single opportunity. It's just not possible. As such, there will be many opportunities he will miss. There were probably many great investments around the world that he never even heard about. The world is simply such a big place.
If buffett really sat down to learn, understand and think about all the possibilities, limitations and obstacles of bitcoin, I'm sure he'll be much better at it than I am. But what does he gain by doing that? Buffett, being an investor and owning an insurance company, he values his time. He even counts down the number of days he expects he has left in the world, and think about how to optimally use that time. So why, why would he waste time on bitcoin? There are any number of other profitable ventures waiting for him, things that he already understands, things that are virtually risk free for him. Why would he waste time reading and learning about something that, to a person who doesn't understand it, seems absolutely ridiculous? I mean when you first heard about bitcoin, did you think "wow, this is amazing" or did you think "WTF, people spend money on some fake money? What idiots"?
You see, I registered last month. But I first heard about bitcoin in 2011-2012, a bit after that first spike to $30, whenever that was. But I just dismissed it as silliness for the benefit of drug dealing criminals. I'm sure that's the first reaction for most people. There's really no reason for Buffett to look deeper into this.
but it's use and application are certainly understandable to a layperson who wants to devote more than a couple of minutes to the task;
I completely disagree. I'd like to think I'm pretty smart. At the very least, I'm not that stupid. It took me a lot more than a couple of minutes to understand. Heck, it took me months, and I still can't say I fully understand bitcoin, and I'm not even talking about the technical aspects of it.
I think one of the greatest barriers for bitcoin is that it's very difficult to understand. I like to bring up my go example again, just because I see so many similarities between go and bitcoin. Everyone who plays go goes on and on about how "elegant and simple" the rules are. But quite honestly, the rules cannot be more confusing to a beginner. You won't even know when the game ends/ended or who won for the first few times you play, without someone telling you.
