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Buffett bashes bitcoin as nonproductive, thriving on mystique

By Reuters

Billionaire investor Warren Buffett on Monday said buyers of bitcoin, which he has characterized as "rat poison squared," thrive on the hope they'll find other people who will pay more for itRead full story

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  • And I ask again: Are we *still* invoking tulips in the crypto discussion? For such smart guys, Buffett and Munger are awfully lazy when they struggle to explain their obstinance.

    Guys like this will always recommend the stock market. Fine! Stick to stocks. Buy Big Blue. Crank out 5% gains, year over year. Godspeed. No one is denying that a long-term, diverse portfolio will carry you across the finish line at retirement.

    Some of us, however, are excited by the frightening unknowns of tech, and we

    And I ask again: Are we *still* invoking tulips in the crypto discussion? For such smart guys, Buffett and Munger are awfully lazy when they struggle to explain their obstinance.

    Guys like this will always recommend the stock market. Fine! Stick to stocks. Buy Big Blue. Crank out 5% gains, year over year. Godspeed. No one is denying that a long-term, diverse portfolio will carry you across the finish line at retirement.

    Some of us, however, are excited by the frightening unknowns of tech, and we don’t need our investments (nay, *speculations*!) to pass through the gilded gates of Wall St. We’re putting money into crypto with eyes wide open because it speaks to us. We see something greater on the horizon. And, yes, we want to make money. Who doesn’t?

    Meanwhile, guys like Buffett wait until innovators are solidly in the black before recommending them as buys. Maybe we should just stopping taking their advice when their goals are so radically different than our own.

  • Sumeet Shah
    Sumeet ShahBacking brands at Swiftarc Ventures

    The past: Buffett referred to private equity firms as prostitutes.

    The present: Buffett's favorite coinvestor is a private equity firm, 3G Capital.

    The present: Buffett refers to crypto as "rat poison squared." Munger uses the words "dementia" and "trading turds" (classy) to describe it.

    The future: I think you know where I'm going here.

  • James Randorff
    James RandorffMusician, Instructor at US Navy

    The problem with the typical "explain it to me like I'm five" approach to cryptocurrency education is that we now have a bunch of people who are explaining it like a five-year-old would. That's cute when it's kids talking about history or famous stories, but dangerous when it's adults convincing people to invest large sums of money.

    If you look back on history, despite the market changing and adapting, Buffett has been right far more often than he has been wrong. If I'm betting on something I don't

    The problem with the typical "explain it to me like I'm five" approach to cryptocurrency education is that we now have a bunch of people who are explaining it like a five-year-old would. That's cute when it's kids talking about history or famous stories, but dangerous when it's adults convincing people to invest large sums of money.

    If you look back on history, despite the market changing and adapting, Buffett has been right far more often than he has been wrong. If I'm betting on something I don't understand (and I am the first to admit that I have only a passing comprehension of cryptocurrencies), my bet is always going to mirror that of a seasoned, proven expert. In this case, that expert is preaching avoidance.

    Since I won't become a Bitcoin billionaire, I'm okay with becoming a comfortably retired market investor. Cheers to those who succeed with cryptocurrency, but those who lose will have nary a leg to stand on.

  • Mark  White
    Mark White Founder at White Label Media

    Hasn’t Buffett always maintained he won’t invest in anything he can’t touch or smell? This makes everything he says about FB, Twitter, Snapchat, and many tech companies as well as blockchain and Bitcoin seem a bit twee.

  • Warren Buffet’s ability to narrow his investment selections based on outliers that few could see contributed to his early success. Markets change- and relying on that same intuitive, mathematical gift to pick the right investment changed with it. Crypto is unpredictable, and there is no data from the past to make comparisons. I guess that for Warren Buffet, avoidance may look safer.

  • Blockchain, crypto and ICO’s threaten a vast existing financial infrastructure. Powerful vested interests want to keep control of investing and remain the gatekeepers of wealth. They will be swept away...they just don’t seem to realize it yet.

  • Jing Cao
    Jing CaoQuartz

    Buffett traditionally has also shied away from all technology bets, admitting it to be an area in which he has no expertise and therefore no confidence investing in. While I highly respect him, I wouldn’t take tech investing advice from him...considering his first one was in IBM and he’s admitted multiple times to making the wrong bet there in the past couple of years.

  • Peter Green
    Peter GreenFounder at FoodMakers.NYC

    Too newfangled for Warren, or a lack of intrinsic value for the consummate value investor?

  • Naoaki Oishi
    Naoaki OishiCyberagent, Inc

    He always decides the things pretty much rationally based on if it’s well understandable or not. Seems no exception about the crypto currency.

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