Although Buffett doesn't like Bitcoin, he is no different from Bitcoin believers.

Source: Shallot Blockchain

Warren Buffett-one of the greatest investors of all time. For more than half a century, his success in traditional financial markets has enabled him to accumulate a wealth of wealth. Today, Warren Buffett's personal assets have exceeded $ 85 billion.

As we all know, Warren Buffett supports a value-oriented investment philosophy. Benjamin Graham is one of the founders of this investment philosophy, and Warren Buffett has always been a loyal supporter of Benjamin Graham. wholesale. He's known for never investing in areas he doesn't know, so Warren Buffett has repeatedly stated in public that he doesn't "like" Bitcoin. It is even said that Bitcoin is "rat medicine".

But when we combed Warren Buffett's investment philosophy, we unexpectedly found that Buffett's investment philosophy is very similar to the investment ideas of many "Bitcoin believers". Maybe you don't want to believe it? But this is definitely not a joke.

1. "Cash" is king

Buffett often emphasizes that "cash" occupies an absolute dominant position in the financial market and should maintain sufficient liquidity at all times in order to catch the excellent new investment opportunities emerging in the market at the first time.

The "Bitcoin Believer" has always adhered to the belief that "Bitcoin" is king. Although thousands of cryptocurrencies have emerged on the market during the first decade of its existence, so far Bitcoin still accounts for about 70% of the total market value of the cryptocurrency market. These market participants believe that there is no future for currencies other than Bitcoin, and they believe that Bitcoin is the only cryptocurrency worth buying.

It is worth mentioning that currently "newcomers" who have just touched the cryptocurrency market often need to change the legal currency in their currency to Bitcoin first, and then buy other altcoins through Bitcoin, which has consolidated to a certain extent Bitcoin's dominance in the entire market also provides a strong guarantee for the liquidity of the Bitcoin market itself. At the same time, it also allows Bitcoin to assume a "cash" role in the cryptocurrency world, and this is exactly the logic of "cash is king" mentioned earlier.

2. Be fearful when others are greedy, be greedy when others are fearful

Be fearful when others are greedy, be greedy when others are fearful. This sentence is also often mentioned by Buffett when talking about investment tips. And this obviously also applies to the cryptocurrency market. In the frantic rise of the market at the end of 2017, blindly watching the high will likely cause you to be stuck firmly after two full years. And after experiencing a full year of bear market in 2018, whether you can see the potential in the stage of "sorrow and sorrow" in the market will determine whether you missed the small bull market in the first half of this year.

3. Find undervalued assets and buy steadily

One of the basic theories in Buffett's value investment philosophy is that we must discover the undervalued company stocks and buy them firmly.

The reason why those believers in Bitcoin have such a firm belief in Bitcoin is because they believe that Bitcoin is still "undervalued." They believe that Bitcoin is a revolution sufficient to subvert the traditional financial market. In the near future, Bitcoin will surely be used more widely and will eventually replace the existing legal currency system.

As bitcoin is accepted by more and more people, more and more application scenarios will bring greater market demand. Considering that there is an objective upper limit for bitcoin itself, this growing demand is matched by a deflationary The model will definitely promote the sustained high-speed growth of Bitcoin price. At present, it has been voiced that Bitcoin is expected to rise to more than 1 million US dollars / piece in the future.

Fourth, after making the right investment choices, hold on patiently

Buffett pointed out that if you want to succeed in the investment process, after you choose a correct investment target, you should hold it for as long as possible in order to obtain the maximum profit from it.

For those who believe in bitcoin, they coined the word "Hodler" to describe themselves. The logic is very simple. Because they believe in bitcoin, they will hardly sell bitcoin in their hands because of fluctuations in the price of the currency. , And will only continuously accumulate the amount of Bitcoin in your account.

From the perspective of the price trend of Bitcoin in the first decade of its birth, those who have been patient enough have indeed become the real winners in this market.

Conclusion

Perhaps Buffett chose to "abandon" Bitcoin, a revolutionary technology that he did not understand, out of violating the principles of his decades of successful investment experience. But it turns out that his successful experience has been "successfully transplanted" into this emerging market and has actually achieved some results.

We don't need to convince Buffett to agree with Bitcoin. For each of us, what really makes sense is to let these successful experiences mentioned above help us to accumulate more wealth ourselves.

Original title <Warren Buffett Has A Bitcoiner's Mindset >, Author: Sylvain Saurel, shallot APP exclusive finishing translation.