Buffett hates the three main reasons for bitcoin

In the morning, my dad sent me an article about Buffett’s denial of bitcoin, with a message from WeChat: Your idol, Buffett, said that bitcoin is a lie, you should not do this, just do it. thing. I hesitated for a while and returned: he was not my idol.

My dad is a currency blind, a person who doesn't understand Bitcoin at all, and who is not interested, just because of Buffett's remarks, he began to question the legitimacy of the industry I am engaged in. It can be seen that Buffett’s influence is great. In the mainstream society, Buffett is a well-known super rich and stock god. In the currency circle, Buffett is a god- like existence.

First, Buffett all the way to the end


Buffett's view of Bitcoin:

December 2014: Bitcoin is a mirage.

October 2017: Bitcoin is a bubble that cannot generate value.

January 2018: The cryptocurrency will end in tragedy.

May 2018: Bitcoin is a rat poison, and the outcome of the cryptocurrency will be bad.

February 2019: Bitcoin is an illusion that attracts scammers.

May 2019: Bitcoin is a gambling device… Bitcoin can't do anything. Can only be placed there. It's like a shell, it's not an investment for me.

As soon as Buffett sprays bitcoin, it will cause industry doubts because of its powerful influence. Many people really shake the blockchain belief because of Buffett’s remarks. In my opinion, it is not necessary. Buffett is in a slap in the face. He is also an individual, not a god. If you have a cognitive limitation, you will definitely have an eye for it. Let's first analyze from Buffett's point of view. Why is he not so optimistic about Bitcoin? After reading it, you probably have a scale in your heart.

Second, the three deep reasons for negating bitcoin


1. Conflict of investment ideas


As everyone knows, Buffett is a value investment group. He values the value and profitability of the company. Before he prepares to buy a stock , he will do a lot of research on the company to which the stock belongs. The company's fundamentals, financial status, and founding. The team's character pattern, etc., to determine the true value of this stock. There is no real company behind Bitcoin. It is not supported by any government, enterprise or any guarantee institution. Its value comes from people's consensus, which is very fragile in front of value investors.

In addition, from Buffett's attitude towards gold, we can also find some clues. Buffett never invested in gold. He believes that gold assets will never produce anything and are non-productive assets. It is not of much use and can't create wealth. He believes that the value of gold depends entirely on the concept of preservation by the public. In his view, gold is a lazy and rigid asset that should not appear in the investor's portfolio plan.

Looking back, the exchange of bitcoin for gold, bitcoin itself can not create value, so the gold or bitcoin that does not output anything in his eyes is of course of little use.

But people's ideas can also be worthless, and people's consensus is an unparalleled force. Everyone thinks that gold can store value, then it can store value. Bitcoin has more advantages than gold, so why bitcoin can't store value.

2, conservative thinking


Everyone should have played the Snake Game. The secret of winning is that the game needs to be like a fly everywhere, so the probability of touching the "long snake" will be greatly improved, and the "long snake" will not The game is rampant, they need to be stable, so that they can get the final victory.

You may not know Buffett’s early family history. In his 20s, Buffett believed in his theory of Graham’s “smoke stocks” theory. The so-called “smoke stocks” are stocks with very low stock prices . A concept of a small plate of coins with a small circle of coins. Buffett used to play junk stock from 10,000 to 40,000 in the early days.

When Buffett had little money in hand , he got the first bucket of gold through adventure, but now he is worth $90 billion and manages trillions of assets. His most sensible way is to be a conservative. the most important. Like many high-tech stocks, Buffett has invested very little, let alone the emerging field of bitcoin. So from his current position, he certainly doesn't like Bitcoin, and he won't invest in Bitcoin.

3. Maintain the basis of the legal currency standard


Buffett once said: The banking industry is a very good industry, and many banks have high returns on tangible assets. Its Berkshire Hathaway company has invested in Wells Fargo, American Express Bank, and Bank of America.

Who are the potential enemies of these banks? Think of it, there is bitcoin. The basis of all this is based on the legal currency standard. What Buffett does is not to break the rules, but to keep his position.

The birth of Bitcoin is to challenge the government's monopoly of the right to issue money, to challenge the legal currency standard, from the perspective of interest, Buffett denies bitcoin, of course, who would say good words of the enemy?

Third, summary


Every time Buffett denies Bitcoin, the currency circle may hate him, but what I want to say is that for an 89-year-old man , it is already our grandfather. The ability to accept new things is certainly not as good as our young people. Buffett still denies Bitcoin now, but he has affirmed the blockchain technology, and this change has far exceeded our parents.

Don't ask others by your own standards. This is a virtue.

Since we recognize the value of Bitcoin, we should not easily shake the beliefs because of the remarks of others, even if the stock gods come out to deny Bitcoin. The world is changing after all, just like JPMorgan Chase, never optimistic about the release of JPMCoin.

The old gods must fall, the new gods rise, the new world belongs to our young people, let the old people say go.


(Text: Block wave tide Xiaoyan)