Buffett once again attacked Bitcoin at the shareholders' meeting, but isn't it a good thing?
"Bitcoin is a gambling thing."
“The professional traders who work on cryptocurrencies are disgusting.” From late night on May 4th to early morning on May 5th, Beijing time, Berkshire Hathaway’s 2019 shareholders’ meeting was held in Omaha, the hometown of Buffett, Nebraska, USA, Buffett and Its old partner, Mang, once again attacked bitcoin and virtual currency at the shareholders meeting.
Once again attacking Bitcoin, it will increase popularity
Before the Buffett shareholders meeting, Buffett told the media that Bitcoin is a gambling thing, and there are many frauds related to it. Bitcoin does not produce any value. It can't do anything. It is there. It's like a shell, it's not an investment for me.
At the meeting, Berkshire’s vice chairman and Buffett’s old partner, Charlie Munger, said fiercely that he had been invited to participate in the crypto asset investment activities, but he did not go because, in his opinion, these The event is just a bitcoin fan celebrating the life and work of Judas Canary. Munger had previously condemned the crypto-equity deal, saying that it was dementia to participate in these activities. And think that professional traders engaged in cryptocurrency trading are disgusting.
Buffett said that bitcoin speculation has rekindled his feeling of seeing people gambling in Las Vegas. Both of these things made him confident that he could make money in a world where people knew they might lose.
"Buffett is more than Bitcoin. More and more people will know and will inspire more people to study. The old gentleman is a bitcoin salesman." Some practitioners said that Buffett is openly opposed to Bitcoin as a well-known figure. It's not entirely a bad thing. It's actually disguised as an "advertising" for Bitcoin. And last night, perhaps influenced by Buffett's remarks, Bitcoin briefly fell and then rebounded.
Another practitioner said:
"In today's traditional media coverage of Buffett, bitcoin is mentioned in many places. In addition to increasing media exposure, it is also beneficial to the original source of the industry."
Adhere to the decline: "If there is value, the sun will come out to the west"
Buffett – the "Omaha Prophet" has been firmly swearing against virtual currency, and Buffett's negative perception of Bitcoin seems to have been ingrained. It held this view as early as 2014. "Bitcoin can never have a huge intrinsic value. If it has any intrinsic value, then the sun will come out to the west."
At the 2018 shareholders meeting held in the same period last year, Buffett first answered questions about virtual currency at the shareholders meeting.
A question from the Ukrainian, Buffett, why is not interested in cryptocurrency, why do you think it is a bubble?
Buffett believes that these unproductive assets are like this. If you buy gold, you should consider its compound growth rate, which may have been very low for some time. This situation will not be delivered in any value for a period of time. You can only be so precious because it is scarce and can only dig so much, but what can it produce? Nothing at all.
"You imagine what the world would be like without a check, but the check itself has no output. It's just a way of money circulation, not a substitute for cash. Any time you buy a non-productive asset, It is dependent on others to pick up at a higher price, because they think they will sell to the next person and get more money. Many times everyone is trying this situation, and the final outcome is not very good."
For example, if you encounter a difficult economic period, you think about this problem, such as Louis Sana, the acquisition we made at that time, how much was bought by 15 million, when I bought the land of Louis Sana At the time, a square mile is about $20. This is a good sale. Although it is a non-productive asset, it has gained productivity after a while.
“You can also buy stamps and buy other things, for example, in order to collect stamps, for example, later, there is more value,” he said, but if you rely on others, imagine that they are constantly rising at a higher price. Your price, in the end, you actually have nothing to compare with the productive assets, or if you buy crops and farms, you will always know that your contribution will be rewarded later.
Buffett stressed that "it can be done through the output of assets over a period of time. This is an investment." If you buy something, the price will naturally rise the next morning, and many people start to invest in it. There are also many When people walk away, this situation is not what we are optimistic about, and the final result is very bad.
The final result of the cryptocurrency will be very bad. The virtual currency is different from the land or company stock, not the value-added asset. The value of the virtual currency depends on more people entering the market. Virtual currency is more likely to attract “swindlers and bragging people”, especially if they see that their neighbors have already made a fortune through this opportunity and will go to speculation. And you will face some other new problems that may be created soon, including exchange rates, etc., which are very difficult problems to solve.
After Buffett’s answer, his partner Mang’s words were more intense:
"I even hate cryptocurrencies more than you, just as someone is trading a bowel movement. For me, this is simply a confused reaction. Many cryptocurrency traders are simply disgusting, as if some people are completely trading. If there is no meaning, you will say that I can't fall behind it. I have to join in it. I am worried that I have not caught up with this wave. What logic is this?"
Text / Xiao Yan
Source / PANews