"I would rather buy land than bitcoin."
This sentence is obviously not optimistic about Bitcoin, but this is different from Buffett's previous point of view. Previously, Buffett described Bitcoin like this:
"Bitcoin is a gambling tool and has no value."
On the surface, although Buffett still does not like Bitcoin, his views on Bitcoin are undergoing subtle changes. In the past, he thought that Bitcoin was a gambling tool and worthless. Now he no longer says that Bitcoin is worthless, but just says that he is unwilling to buy Bitcoin.
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Buffett is the stock god Buffett. When investing in stocks, he has a precise vision and a superb strategy. But this series of logic may not apply to Bitcoin.
❖ Buffett's Value Logic ❖
Stock of corporate value
Let's start with the stock of corporate value.
The existing value of an enterprise is the stock of enterprise value. All assets in an enterprise, whether it is capital, equipment, or technology, are valuable things. These things occupy the company's funds, and to put it plainly, they spend money. And this part of the funds held by these things, reducing corporate debt, is the stock of corporate value.
If a company has 100 million assets and 50 million liabilities, then 100 million will be reduced by 40 million, and the remaining 60 million will be the stock of enterprise value.
If the company has two shareholders, each holding two-thirds and one-third of the equity, then the two shareholders' shares are 40 million and 20 million, respectively.
If the company issued a total of 6 million shares, the intrinsic value of the stock would be 10 yuan. Of course, in the secondary market, stocks will deviate from this 10 yuan in the process of everyone buying and selling, and the actual price may be higher or lower than 10 yuan, but the fluctuation of stock prices is often based on this 10 yuan.
The stock of corporate value is what the company has, which is not what Buffett is most concerned about. Buffett is more concerned with the flow of corporate value.
Business value flow
The flow of enterprise value is the increase or decrease of enterprise value. Buffett focuses on this.
Because the flow of corporate value determines the future stock of corporate value. It's the same company above, and its value stock is 60 million. But if the value of this enterprise flows into 10 million next year, then its stock will become 70 million next year.
At the same time, the intrinsic value of the company's stock became 11.67 yuan. Then the stock price is likely to rise.
This is Buffett's stock logic. He is concerned about the profitability of the company and its development ability. The product and business of an enterprise can bring more value inflows to the enterprise in the future, and this is the growth of the stock price.
❖The value of Bitcoin ❖
Bitcoin is significantly different from an enterprise: an enterprise is a profitable, centralized organization, while Bitcoin is a non-profit, open community.
Bitcoin without borders
Enterprises generate value flow through the sale of goods and services, thereby increasing the company's value stock.
Take a look at this picture. Enterprises have obvious boundaries. The inside is the producer and the outside is the consumer.
As for Bitcoin, it has no goods and services for sale, and naturally cannot make money in it. That's why Buffett blamed Bitcoin.
However, Bitcoin has no boundaries. Its users may be those who hold bitcoin, or they may use bitcoin codes.
The inflow of corporate value is the same process as the delivery of goods and services. In other words, the growth of corporate value comes from the use of goods and services. If no one uses the goods and services produced by an enterprise, there will be no value inflow.
However, bitcoin technology is not a "one-handed payment, one-handed delivery" process.
However, Bitcoin use and value inflow are not the same process. Because Bitcoin is an open value network, there are no obvious boundaries.
To put it bluntly, some people did not pay for using bit technology!
I would like to ask, from Ethereum to EOS to other blockchains, whether it is the value public chain, application public chain, alliance chain, private chain, which kind of chain is not inspired by Bitcoin? Which kind of chain has not directly or indirectly studied and referenced the bitcoin code.
Bitcoin appreciation logic
Although many people do not recognize the value of Bitcoin, the application of blockchain is widely recognized in all sectors of society. If Bitcoin is not open source, can Bitcoin's blockchain code be sold? Will anyone buy bitcoin's source code for building blockchain and research?
Obviously it should be. At this time, Bitcoin can be profitable, just like a business.
However, bitcoin is open source, it has open source code, it has given up profit, and instead made the source code available to all people, people can learn it, study it, use it without paying.
However, someone will buy Bitcoin to support Bitcoin, and Bitcoin will have a price. As a result, the research results of Satoshi Nakamoto and the cost paid by the miners have achieved value.
The development of blockchain is the process of human consumption of Bitcoin technology.
However, humans need not pay for this consumption. But this is not why Bitcoin is worthless. On the contrary, it is precisely because people consume Bitcoin technology that they have confidence and love for Bitcoin, so people invest in Bitcoin.
The application of blockchain will continue to develop. This development process is inseparable from Bitcoin technology. This process is a process that is used and carried forward than the technology of currency.
The continuous development of the blockchain is accompanied by an increase in people's confidence in Bitcoin, which is the logic of Bitcoin appreciation.
The traffic of Bitcoin value does not directly come from the paid use of Bitcoin technology, but is continuously used free of charge in Bitcoin technology, and at the same time, more investment is obtained in the form of crowdfunding, thereby increasing the value of Bitcoin .
❖ Written at the end ❖
Buffett's stock logic is very scientific. However, we must understand that Buffett is a god of shares. The so-called stock god is the god-man of the stock market. Buffett's value logic is summarized in the stock market. It applies to stocks, but not necessarily to all investments.
Bitcoin is not the same as stocks. It is an open value network. Its value does not come from sales, but from public support and recognition of Bitcoin.
Of course, it cannot be denied that bitcoin has been hyped by people because some people hold bitcoin because of speculation, not real support.
TVB cannot measure what value Bitcoin should have, nor can it accurately determine whether a bubble exists. However, it is certain that bitcoin is valuable. Its value exists in a different way from the enterprise. The value logic of bitcoin subverts Buffett's existing perception.
Perhaps Bitcoin, an open, decentralized, accessible and co-governance method, will become a new form of social organization in the future.
Buffett believes that Bitcoin's code can be copied, so Bitcoin is not as scarce as gold, so Bitcoin is not valuable. However, the value of Bitcoin does not come from assets like Bitcoin. The source of the value of Bitcoin and the logic of value growth lie in Bitcoin technology and the ideas behind this technology, and the inspiration this technology brings to technology and society.
Bitcoin code can be copied, even with more scientific and perfect technology, but all these copying and appreciation are using bitcoin technology. The more bitcoin technology is used, the more its value will naturally increase. And the form of growth is not realized in the form of value / commodity exchange, but in the form of a crowdfunding investment.
Because the more blockchains are used, the more people will admire and love Bitcoin technology.
Therefore, Bitcoin does not produce goods and services like enterprises, but Bitcoin technology is constantly being used by people, so only some people are willing to invest in Bitcoin.