Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Warren Buffet and Charlie Munger on crypto in 2018

twitter.com

Post reply on HN
Print view View original

51–60 of 161 posts

Re: Warren Buffet and Charlie Munger on crypto in 2018

#51

Post by chii »

rcarr wrote: post #32

I've always found this excerpt from a Doomberg article sums the whole thing up nicely: > We distinctly recall drawing two circles on a piece of paper. In the circle on the left, we wrote "Real Economy"; while in the circle on the right we wrote "Crypto Universe". We drew two pipes between the circles - one flowing into the crypto universe and the other flowing back to the real economy - and labeled both pipes with fi…

A casino is an analogue to crypto.

The house takes in money, and produces entertainment. Some people also leave with more money than they go in, but most lose it all.

Re: Warren Buffet and Charlie Munger on crypto in 2018

#52

Post by Eisenstein »

madsbuch wrote: post #34
paulgb wrote: post #15

Earlier quoted context omitted.

Is an insurance DAO fundamentally any different from mutual insurance? What benefit does the blockchain provide? https://en.m.wikipedia.org/wiki/Mutual_insurance

There are probably no fundamental differences like there are no fundamental difference on transportion from a horse to a car. You just have the benefit when you can drive 130kmh for hours on well maintained road infrastructure instead of riding through a forest.

There are benefits from moving from a horse to a car. What are the benefits for moving insurance onto a blockchain?

Re: Warren Buffet and Charlie Munger on crypto in 2018

#53

Post by paulgb »

madsbuch wrote: post #34
paulgb wrote: post #15

Earlier quoted context omitted.

Is an insurance DAO fundamentally any different from mutual insurance? What benefit does the blockchain provide? https://en.m.wikipedia.org/wiki/Mutual_insurance

There are probably no fundamental differences like there are no fundamental difference on transportion from a horse to a car. You just have the benefit when you can drive 130kmh for hours on well maintained road infrastructure instead of riding through a forest.

If speed is the primary advantage of a car to a horse, what is the primary advantage of an insurance DAO to mutual insurance?

Re: Warren Buffet and Charlie Munger on crypto in 2018

#54

Post by JonathanBeuys »

CPLX wrote: post #47
JonathanBeuys wrote: post #42

So far, the market disagrees with Buffet and Munger. In 2018 Bitcoin's market cap was around $150B. Today it is around $300B. Maybe Charles and Munger might have come up with interesting concepts long ago. But not during my adult life. They put all this work and research and expertise into their asset picking. But did anything come out of it in the last decades? If you invested into the NASDAQ 100 - no matter if it w…

Bitcoin doesn’t have a market cap. This is true because if you somehow could pay $300bn today and then possess all bitcoins you would have acquired literally nothing whatsoever. This, in fact, is exactly what these guys are pointing out.

First, you are confusing market cap with "value" or some other concept. Market cap is price of the last sale multiplied by stock. So every asset has it by definition.

Second, how do you back up that statement of not being able to sell it? How do you know you couldn't sell those Bitcoins back to the market?

Would you think the same about buying up all gold?

Re: Warren Buffet and Charlie Munger on crypto in 2018

#55

Post by madsbuch »

jqpabc123 wrote: post #36
adriand wrote: post #5

Regardless of how you feel about crypto - and I admit to seeing some valuable use-cases, while being highly skeptical of the speculation - you gotta admit that these comments are prescient and also very funny. I sincerely hope I have that presence of mind at that age.

FedNow aims to provide *instant* and secure transfers between existing fiat bank accounts 24/7/365 at a projected cost of 5 cents per transaction. In trials now, scheduled to launch in mid-2023. The most valuable use-case for crypto was prodding the Fed to develop and implement this. If all goes as planned, consider crypto's work done. https://explore.fednow.org

In Europe, the SEPA network, this has been the case for the past years. Just that it is free – and this is across countries.

The American banking system is currently in a bad, insecure, and expensive state.

Re: Warren Buffet and Charlie Munger on crypto in 2018

#56

Post by Eisenstein »

madsbuch wrote: post #44
HermanMartinus wrote: post #41

Earlier quoted context omitted.

It's not an opinion. We have millions of the aforementioned organisations currently and historically. They do work. We, however, don't have a single example of a DAO that has done anything of merit. Yes, time will tell if they find a way to make it work, but the fact of the matter is that they aren't needed.

Of cause your wording represents an opinion. You say there is no room for improvement on current small scale institutions by using blockchain technologies. I will leave that opinion to you. It took several decades from the first steam engines til we had a serious contender to previous means of transportation on a horse back. So the empiric foundations you refer to are not representative. Have a good day.

Steam engines were not designed to supplant horses as transportation, they were designed to supplant horses for work. In that regard there was effectively no lag time between their invention and their usefulness. What is it with people defending crypto with terrible metaphors?

Re: Warren Buffet and Charlie Munger on crypto in 2018

#57

Post by the-smug-one »

soco wrote: post #19
agd wrote: post #7

I'm not sure that the statements that a) there are bad actors in the space, and b) there will be a crash, are particularly insightful here. Both of these were predicted/expected by many, including many crypto supporters. The key question is whether crypto will rebound. I would expect it to, particularly as governments move more into digital currencies.

What kind of "government digital currencies" are you referring to?

Google term: central bank digital currency

For example, Sweden: https://www.riksbank.se/sv/betalningar--kontanter/e-krona/

Re: Warren Buffet and Charlie Munger on crypto in 2018

#60

Post by StingyJelly »

CPLX wrote: post #47
JonathanBeuys wrote: post #42

So far, the market disagrees with Buffet and Munger. In 2018 Bitcoin's market cap was around $150B. Today it is around $300B. Maybe Charles and Munger might have come up with interesting concepts long ago. But not during my adult life. They put all this work and research and expertise into their asset picking. But did anything come out of it in the last decades? If you invested into the NASDAQ 100 - no matter if it w…

Bitcoin doesn’t have a market cap. This is true because if you somehow could pay $300bn today and then possess all bitcoins you would have acquired literally nothing whatsoever. This, in fact, is exactly what these guys are pointing out.

If you could pay $300bn today, you wouldn't be able to possess all bitcoins.
Post reply on HN