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called it worthless. https://www.news.com.au/finance/money/investing/warren-buffett-thinks-bitcoin-is-worthless-elon-musk-responds/news-story/8858f9d4dae797aaa

called it worthless. https://www.news.com.au/finance/money/investing/warren-buffett-thinks-bitcoin-is-worthless-elon-musk-responds/news-story/8858f9d4dae797aaa0d4b8986f87ad3c https://www.news.com.au/finance/money/investing/warren-buffe...

tehlike 4y ago
He and munger have been saying that almost every year now.
- therealcamino 4y ago
  Don't they often say it about gold, too?
  - gitfan86 4y ago
    Yes, their point is that if you buy a cashflow negative asset you are now stuck having to figure out how to sell that asset to the next person. If you buy a cashflow positive asset the opposite situation happens. You don't have to convince anyone of anything.
    - throw8383833jj 4y ago
      like equities? from a macro level, dividends on the s&p500 is like 1.3%, so the difference between productive and nonproductive assets isn't very high, not nearly as high as it once was. munger and buffet come from an era when dividends were still 4.5% or higher. those days are over, with the sky high valuations we have now.
    - rufusroflpunch 4y ago
      This is why I hold Bitcoin. I expect it to be widely desirable someday, and will gain much value in the meantime. This is the nature of money itself.
      - gitfan86 4y ago
        I hold beanie babies because I expect them to be widely desirable again someday. This is the nature of collectibles.
        rufusroflpunch 4y ago
        Yes, money is a form of collectible. I don't think this is the criticism you believe it is.
        gitfan86 4y ago
        I don't think value exists in the way you believe it does.
        rufusroflpunch 4y ago
        Value is always, and in all cases, subjective. So what makes Bitcoin users subjectively value Bitcoin? Because it's truly decentralized. Its decentralization is what makes it scarce, neutral and uncensorable. There are no insiders, founders or companies to attack. It's also digital, so it can be transferred at the speed of light. This decentralization made early users speculate that it could be worth something for its unique properties. That jumpstarts the network effect. More people using it means even more people will start to value it. This is a positive feedback loop. The incentives are obvious. The feedback loop will continue toward global adoption. But you seem very skeptical, so tell me, what is going to break this feedback loop? What is going to kill Bitcoin?
        gitfan86 4y ago
        Nothing will kill Bitcoin, just like nothing killed beanie babies. They both will exist for a long time. But the world is finite, there is a limited number of people who have a limited amount of money with to speculate. Maybe the Bitcoin pumpers will convince some of that money to move away from other speculative investments and into Bitcoin and the price will go up, but there is a limit that will be hit eventually, then you have to deal with the reality of a negative cashflow asset.

tehlike 4y ago

He and munger have been saying that almost every year now.

therealcamino 4y ago
Don't they often say it about gold, too?
- gitfan86 4y ago
  Yes, their point is that if you buy a cashflow negative asset you are now stuck having to figure out how to sell that asset to the next person. If you buy a cashflow positive asset the opposite situation happens. You don't have to convince anyone of anything.
  - throw8383833jj 4y ago
    like equities? from a macro level, dividends on the s&p500 is like 1.3%, so the difference between productive and nonproductive assets isn't very high, not nearly as high as it once was. munger and buffet come from an era when dividends were still 4.5% or higher. those days are over, with the sky high valuations we have now.
  - rufusroflpunch 4y ago
    This is why I hold Bitcoin. I expect it to be widely desirable someday, and will gain much value in the meantime. This is the nature of money itself.
    - gitfan86 4y ago
      I hold beanie babies because I expect them to be widely desirable again someday. This is the nature of collectibles.
      - rufusroflpunch 4y ago
        Yes, money is a form of collectible. I don't think this is the criticism you believe it is.
        gitfan86 4y ago
        I don't think value exists in the way you believe it does.
        rufusroflpunch 4y ago
        Value is always, and in all cases, subjective. So what makes Bitcoin users subjectively value Bitcoin? Because it's truly decentralized. Its decentralization is what makes it scarce, neutral and uncensorable. There are no insiders, founders or companies to attack. It's also digital, so it can be transferred at the speed of light. This decentralization made early users speculate that it could be worth something for its unique properties. That jumpstarts the network effect. More people using it means even more people will start to value it. This is a positive feedback loop. The incentives are obvious. The feedback loop will continue toward global adoption. But you seem very skeptical, so tell me, what is going to break this feedback loop? What is going to kill Bitcoin?
        gitfan86 4y ago
        Nothing will kill Bitcoin, just like nothing killed beanie babies. They both will exist for a long time. But the world is finite, there is a limited number of people who have a limited amount of money with to speculate. Maybe the Bitcoin pumpers will convince some of that money to move away from other speculative investments and into Bitcoin and the price will go up, but there is a limit that will be hit eventually, then you have to deal with the reality of a negative cashflow asset.