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

Warren Buffett: Bitcoin Is Pure FOMO

secure.marketwatch.com

Post reply on HN
Print view View original

61–70 of 196 posts

Re: Warren Buffett: Bitcoin Is Pure FOMO

#61

Post by hannasanarion »

JoeAltmaier wrote: post #32
aphextron wrote: post #22

As someone completerly uninvested in this whole mania, I still see Bitcoin as something with an inherent value. The real problem right now is that nobody knows what that inherent value really is. Even if the price were to crash 100x tomorrow, Bitcoin would still have some value because of the energy expenditure involved with Proof of Work. Of course people that are "investing" in it now are simply gambling. But Bitco…

So there is inherent value in burning piles of cash, because 'cash went into creating it'? I don't get the logic.

Yeah, that's like saying that a pound of shredded bills has value. Like, yeah, you can trade it, and yeah, value was spent to create it, but you can't get that back.

It's not like buying bitcoin gives you back electricity.

Re: Warren Buffett: Bitcoin Is Pure FOMO

#62

Post by aetherson »

Cacti wrote: post #19
brndnmtthws wrote: post #13

It's interesting to note that most of the people who are pro-Bitcoin were born after 1980 or so. Could it be that Mr Buffett just doesn't get it?

Your argument is that one of the most successful investors in the history of mankind is physically incapable of understanding Bitcoin investment (or anything, for that matter) just because he's old?

I don't think that he suggested that he was "physically" incapable of understanding Bitcoin investment.

But, I mean, sure. People get old and start to have difficulty comprehending things that get added to the world long, long after they built their mental model of the world. This happens even to smart people. Even to singularly smart people. I don't know if it's happened to Buffet or not, but if he lives long enough, it will.

Re: Warren Buffett: Bitcoin Is Pure FOMO

#63

Post by Kinnard »

nugi wrote: post #10
Kinnard wrote: post #6

Does Warren Buffett understand digital signatures?

How would you explain to him how they make the distinction here? ...asking for a friend

Bitcoin is built off of two cryptographic primitives. They implement rights/powers in software.

Here's a good example to grasp the idea: instead of asking the government not to read your emails (petitioning for the right of privacy) implement symmetric cryptography. You achieve the right instead of asking for it. Each cryptographic primitive does so and they can be connected up in ways that achieve more rights (Proof-of-Work>>Mining>>Cryptocurrency)

Shameless: http://inbitbox.com

Re: Warren Buffett: Bitcoin Is Pure FOMO

#64

Post by ineedasername »

juanmirocks wrote: post #27

Sending small to large quantities of wealth worldwide quasi instantly and with small fees does have a tremendous value. Ask families of immigrants. Buffet hasn’t even invested in digital tech stocks. IMO, even after all the huge respect he deserves, he doesn’t get this technology. Other than that, I don’t doubt that many current “investors” are only FOMO movers

I think the biggest roadblock to developing the next steps of bitcoin that could more easily demobstrate this value is the influx of FOMO money bogging down the system and making it less reliable as a stable, fast, inexpensive system. Maybe this is even a necessary stage, but I'd like it to be over: it's the least interestinhnpart of the social and technologic advances offered by crypto.

Re: Warren Buffett: Bitcoin Is Pure FOMO

#65

Post by 0xFFC »

the_gastropod wrote: post #29
down wrote: post #9

Bitcoin saves lives in Venezuela, you people need to get your head from your asses, first world is not the only world.

And destroys lives by contributing heavily to CO2 emissions which, funny enough, have an outsized impact on the citizens of third world countries.

It is not fault of bitcoin you are burning oil/etc for mining it. Use renewable energy.

Re: Warren Buffett: Bitcoin Is Pure FOMO

#66

Post by kesor »

aphextron wrote: post #22

As someone completerly uninvested in this whole mania, I still see Bitcoin as something with an inherent value. The real problem right now is that nobody knows what that inherent value really is. Even if the price were to crash 100x tomorrow, Bitcoin would still have some value because of the energy expenditure involved with Proof of Work. Of course people that are "investing" in it now are simply gambling. But Bitco…

There is a known name for this, it is called "Sunk Cost". If it cost you a billion dollars to build a spaceship that doesn't fly, that spaceship is not worth a billion dollars - it is worth nothing. Capish?

Re: Warren Buffett: Bitcoin Is Pure FOMO

#67

Post by 55555 »

Cacti wrote: post #19
brndnmtthws wrote: post #13

It's interesting to note that most of the people who are pro-Bitcoin were born after 1980 or so. Could it be that Mr Buffett just doesn't get it?

Your argument is that one of the most successful investors in the history of mankind is physically incapable of understanding Bitcoin investment (or anything, for that matter) just because he's old?

How about maybe because he is extremely busy?

Re: Warren Buffett: Bitcoin Is Pure FOMO

#68

Post by byte1918 »

realusername wrote: post #21
nugi wrote: post #15

Earlier quoted context omitted.

And bitcoin also pays for murders, launders money, etc. I feel, just as cash, it is quite ethics agnostic. Not knocking cryptocoin, just don't pretend it is a singular force for good. It is representation of capitol, albeit in a unique way.

I highly doubt Bitcoin is much used for laundering money, transactions are all happening in clear and if you try to hide traces by creating multiple addresses you are going destroy your capital in transfer fees (which are very high right now). It's clearly not the best currency to hide untraceable money.

Wouldn't it be possible to temporarily switch to an intermediary altcoin (eg. ethereum, btc) ? I'm not invested nor an expert in any crytocurrency, so please correct me if I'm wrong.

Re: Warren Buffett: Bitcoin Is Pure FOMO

#69

Post by adamnemecek »

cptskippy wrote: post #23
brndnmtthws wrote: post #13

It's interesting to note that most of the people who are pro-Bitcoin were born after 1980 or so. Could it be that Mr Buffett just doesn't get it?

Couldn't it also be that he does "get it" and all the young and inexperienced investors/speculators don't?

I'm not going to try to refute your argument (even though I might disagree with it), I'm going to assume that what you say is right.

Ok, why does it matter if he does get it and the young investors don't if the young investors can participate in a new economy. Like what is there to get? If they establish a new economy, who cares if Warren gets it?

Re: Warren Buffett: Bitcoin Is Pure FOMO

#70

Post by skinnymuch »

brndnmtthws wrote: post #39
epistasis wrote: post #34

Earlier quoted context omitted.

Sure. But it seems faaar more likely that Buffet has seen this before and those who are pro-Bitcoin and haven't watched similar commodity/equity rushes are not getting it.

What? Bitcoin has never existed before it was created, and it wasn't possible before the Internet, so I don't think Warren Buffett has seen it before unless he's a time traveler.

OP talking about other phenoms. [S]he says that. IE the dot com bubble and some of the insane stock prices.
Post reply on HN