Warren Buffett features a consistently negative attitude towards Bitcoin (BTC). Even the long-awaited dinner with Justin Sun, founding father of Tron (TRX), couldn’t change the successful investor’s opinion. Warren Buffett remains convinced that Bitcoin doesn’t add up and compares it to shells, which were used as a way of payment for a brief time in times before the gold standard.
We look at Buffett’s statements and explain why the great man is entirely wrong in his assessment and still hasn’t understood the thought and benefits behind Bitcoin.
Bitcoin for Warren Buffett still no investment case
Warren Buffett thinks BTC may be a lousy investment. Even the gift of Justin Sun within the sort of a Bitcoin couldn’t dissuade the billionaire investor from his opinion.
We can plant and harvest something [but] Bitcoin cannot capture the worth of the blockchain. Simply because something has value doesn’t suggest it’s a sound investment.
Warren Buffett continues to back the US dollar and, therefore, the system behind it. He sees, in particular, an existing protection mechanism within the traditional market that folks get through stocks and shares, and so on. Bitcoin doesn’t offer any protection in his eyes and thus entails an increased risk for investors. It’s no wonder that an individual who has become one among the wealthiest people within the world through the regular market and, therefore, the USD is somewhat skeptical about an alternate system. The question aged & affinity to new technologies certainly plays a task here. Generally, Buffet tends to take a position conservatively.
Buffett continues to believe the strength of the US dollar
But within the eyes of Buffett, Bitcoin won’t prevail even within the younger generations.
I’m sure my grandson would instead inherit my fortune in US dollars.
This statement could also be right for Buffett’s grandson, who has undoubtedly received some advice from the investment legend himself. So I would not be surprised if the grandson is similarly negative about Bitcoin. However, the stock exchange veteran has made another and doubtless very questionable statement about Bitcoin and, therefore, the US dollar.
The US dollar can store value, but Bitcoin isn’t ready to do so, and thus it [=BTC] is not any different from a shell.
USD is loosing tons of buying power and is in check of a central authority
According to Warren Buffett, the US dollar can thus maintain its value and therefore has a massive advantage over the currently still highly volatile Bitcoin. But if we glance at the event of the purchasing power of the US dollar over the last 40 years, we see a different picture: the US dollar has lost over 80% of its purchasing power since 1971.
Moreover, the US dollar is under the control of the FED (Federal Reserve). The FED can decide what proportion USD should be added to the market and thus also determines the rate of inflation. By the emergence of further USD, the entire quantity increases and thus automatically depresses the purchasing power. This development is particularly bad for people that have a coffee income and keep most of their savings in USD. These people often haven’t any access/information about alternative asset classes and are therefore becoming poorer and weaker within the future.
Bitcoin as an alternative to the ailing economic system
This is precisely one of the elemental ideas of Bitcoin. They need to make a replacement gold standard again on a decentralized, fair, and secure network. The quantity of BTC is restricted to 21 million; the rate of inflation is fixed and visual to everyone. At Bitcoin, nobody can increase the amount of change in the price of inflation. We do not need to believe someone to form the proper decisions for us but can depend upon the code and consensus of Bitcoin.
We have created an alternative that’s so complex and revolutionary that a lot of people don’t even realize the potential behind it. I prefer to call Bitcoin the wolf in sheep’s clothing. Because Bitcoin is far quite, it’s going to seem initially glance, take the time before you begin performing on other projects to know BTC better. This may also assist you in assigning Altcoin projects better and estimating how high the respective potential is. The Bitcoin Standard, which is now also available in German, is suitable for this purpose.
Billionaires don’t need a BTC – but we do
So what does Warren Buffett’s statement tell us about the potential of Bitcoin – Buffett is worth billions and sees no sense in BTC. This is often probably not very surprising since this person already has everything in life and never has got to worry about money and his fortune again. But most of the people aren’t in shoes worth billions and are trying to find alternative investment opportunities outside the regular market to flee the devaluation of their own paper money.
The current monetary policy also because of the tensions within the worldwide economy and, therefore, the devaluation of the FIAT currencies, are crying out for a healthy alternative. Bitcoin might be that alternative, but albeit we are currently far away from it, BTC is occupation precisely the proper direction. This revolutionary system is merely 11 years old. It’ll be an extended time before we gain sustainable confidence in digital currencies and Bitcoin. But the signs are green, and even a billionaire investor won’t be ready to change that.
Will Warren Buffett be right, and Bitcoin (BTC) never catch on?
More Bitcoin News: Link
Source : Link