@Talon
Good question from Buffet With that in mind, I’d only buy Bitcoin The rest feels like gambling to me and I don’t see much value in it
Isan said:
@Talon
Good question from Buffet With that in mind, I’d only buy Bitcoin The rest feels like gambling to me and I don’t see much value in it
Buffet was indirectly dismissing Bitcoin with that question
Paraphrasing, he basically said
If someone sold me all the farmland in the U.S. I could profit off the crops
If someone sold me 1% of rental properties in the U.S. I could profit off rental income
But if someone tried to sell me all the Bitcoin in the world Who could I sell it to How could I profit off it
Buffet is skeptical of crypto because he sees no utility in it I think a small part of BH’s portfolio is in crypto
@Talon
I know how he feels about bitcoin and crypto
I see it differently I believe I could sell my 100% BTC to others because many see it as a strong store of value That’s where its value comes from People would pay to use it because it’s good at storing value just like they pay rent for a property
@Isan
I’m not arguing with you and I admit I’m not an expert in cryptocurrency But what utility does Bitcoin provide I see it as a store for money but so are stable coins I don’t fully understand how Bitcoin’s market value works and what causes it to change
Stocks rise and fall based on evaluations, speculation, and news But I’m not sure what drives crypto’s value
@Talon
Think of it like the U.S. dollar It was worth more in the past but it’s now losing value and it won’t return to its original value because more dollars are being printed Bitcoin cannot be duplicated and it’s protected by an asset that no one owns Its value is similar to the dollar’s usability We still need dollars, but they keep printing them So you could invest in crypto to shield yourself from inflation
@Wray
I get that appeal when comparing it to the U.S. dollar, however I can see pushback from major governments If BTC were to gain traction how would they tax it It seems the main reason for crypto’s popularity is its avoidance of taxes You can use it and avoid tax from specific jurisdictions
I get that it’s a hedge against inflation But if governments start minting their own digital currencies then Bitcoin’s adoption might decline
@Talon
Everything holds value depending on what people are willing to pay I may say X art is worthless but for someone a painting of X might be worth a million It’s clearly a speculative market but so what
@Firth
That’s where it’s tough to find consensus about cryptocurrency Is it a commodity (a good whose value is determined by buyer and seller) or a currency (a payment method with a value based on the backing entity) It seems like we treat it as a commodity when it’s meant to be a decentralized currency There are many uncertainties regarding how crypto is classified
@Talon
Bitcoin will one day be the standard for global trade 21 million Bitcoin and not more will ever exist Want to buy a million gallons of oil Just send Bitcoin It will have huge utility and right now that’s seen mainly by those who truly understand it
Are there other potential substitutes for BTC that could do similar things Sure But BTC has so far never been hacked, has strong momentum, user trust, and is starting to attract big investments
@Evans
I like that aspiration But many nations want to control currency values If BTC takes over, it could crash the U.S. economy Most governments rely on IOUs and use the U.S. dollar as leverage for that
I also think BTC has a tough entry point because many nations lack the infrastructure to support blockchain technology That’s why I like Cardano Hoskinson is actually using this tech to build infrastructure I just wish he was better at marketing that
@Evans
The issue with that reasoning is BTC has value but not unique value
I agree with the 21 million cap but there’s no reason another crypto, with similar security and decentralization can’t replace BTC
but BTC has not been hacked
Actually there was an exploit in the early days that let someone mine 184 billion BTC
@Evans
This is just a thought but do you think there might be a scenario where different goods could be purchased and sold using various cryptocurrencies For example Bitcoin for oil and gas while others like ETH, XRP, SOL could be used in other industries
@Crosby
Adoption is key for that to happen As long as cryptocurrencies are viewed as commodities (with value volatility), I don’t see it being feasible The seller is then risking a loss in value at sale Now, if a currency’s value became stable, then I think it could be possible However, that would be disastrous for the U.S. economy
@Talon
I’d guess 99% of people are in crypto just for speculation Outside of that 1% of enthusiast the crypto community has been pretty quiet the last three years Most cringe community ever
I have 98% of my crypto in BTC I also hold maybe 7 other coins including ADA which I invested $4k in
It’s better to invest in crypto during a bear market rather than when things just pumped
Is more pumping to come Many hope and believe so but it’s all just guesswork Learn about what you’re putting your money into and make your own choices It doesn’t matter how many people say Yes or No The only one making financial choices about your money is YOU
I spent the last six months analyzing this coin and here’s what I found
After dismissing low-probability scenarios using an algorithm I developed, I ended up outlining just two possible outcomes
Option one is that the coin rises and we all make profits
The second option is that it falls
This isn’t financial advice
@Johnstone
Thanks for the solid financial advice
@Johnstone
Well said