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RE: Warren Buffett & Bitcoin - Old School Investor Meets Innovative Technology...

in #bitcoin6 years ago (edited)

Well Warren made his money off of traditional investing. Naturally he would be skeptical of anything that doesn't fall within the realm of the ways he's made his money, which cryptocurrencies are definitely outside that bubble. It's hard to imagine, even as a savvy and critically thinking investor, he would look at an asset like this other than a what he's generally said. But his Rule #1 is Invest in what you know. He simply does not know this asset class, thus he won't invest. It looks riskier than he's willing to be, it's something he doesn't understand, and he's admitted that's all it takes for him to not want to invest in something.

It's a fair argument, but not one anyone will listen to, when the reward vastly outways the risks and people want to be apart of this emergent marketplace (assuming they keep their investments appropriate as always). The trustless aspects of cryptocurrencies speak to a lot of what's wrong with the current financial system, and where people would like to see it head. Warren isn't into it on that level, he's just asking for their earnings like it's a company, and is like "oh it's a decentralized whose-a-whatsit? No thanks." He's not going to get it, and he's generally a bad source for people to go to for broad crypto-market analysis IMHO. His opinions on traditional markets would be very appropriate to seek.

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Buffet was a great investor but it somehow got quite silent around him during the last years. Maybe as well because there isn't too much to tell about him anymore either, nothing really amazing seems to happen on his side anymore.

To be honest though, I think I wouldn't invest into any new asset class either anymore at the age of 87. It's just not relevant anymore by then and unnecessary to take such big risk.

Especially when you're a billionaire and you're set, he has other things to hold to his interest and this is just some buzz in his ear. He has many misses on emerging businesses. No one can get it all right, that's why he says invest in what you know. I respect the man alot, but while his opinion is relevant, it's certainly not dogma in this arena. I think the understanding the tech is just as important as understanding investing in crypto. It's a 10/10 hard subject on both tech and investment fronts. Knowing one side of that is helpful, but you need both.

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