Earlier quoted context omitted.
But the valuable use-cases could be solved using other methods efficiently.
so why were they not already solved efficiently before crypto?
Who says they were not?
Warren Buffet and Charlie Munger on crypto in 2018
71–80 of 161 posts
Re: Warren Buffet and Charlie Munger on crypto in 2018
#72Everyone with half a brain has predicted the failure of NFT's and the collapse of ridiculous get rich schemes such as FTX. The big problem is when recognising the (small amount) of value that actually is in the cryptocurrency/defi industry, to put your money to work in a smart manner. Sequoia is clearly not able to do so reliably, but in general it's incredibly hard to be long on a market that's so overhyped as crypt…
If you hold Tesla, you hold it at the current market price. It’s the same position as someone who buys today.
If you wouldn’t buy it today then you should sell.
Re: Warren Buffet and Charlie Munger on crypto in 2018
#73Earlier quoted context omitted.
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.
Just that it is free – and this is across countries.
Almost nothing is ever really *"free"* --- even though it may appear that way at some level. Crypto transactions are certainly not *"free"*; neither are credit cards.
FedNow may likewise have the appearance of being *"free"* for individuals, it all depends on how banks chose to recover the operating costs.
The American banking system is currently in a bad, insecure, and expensive state.
Bad is subjective. Expensive is accurate --- and slow. This is finally being addressed.
Insecure --- I don't really think this is a big issue. There are issues but on an individual level, very few people actually lose money due to any inherent "insecurity" in the system .
Re: Warren Buffet and Charlie Munger on crypto in 2018
#74I'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.
Crypto differs in that the people getting the most entertainment are not the ones putting in the money.
Re: Warren Buffet and Charlie Munger on crypto in 2018
#75Earlier 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.
HermanMartinus is stating facts: there are already millions of organizations productively managing assets, and blockchain governance structures haven't made any kind of concrete contribution so far.
You're stating an opinion that it's like a steam engine, which doesn't really mean anything in this context.
Re: Warren Buffet and Charlie Munger on crypto in 2018
#76It is wrong to assume that crypto is broken if it doesn't have a high value in some arbitrary currency like the USD. Crypto works just as well even if the price 0. It will still process transactions, still create new blocks, and it will still have a use for someone somewhere, even non-financial.
All mainstream cryptocurrencies rely on the high cost of attacking the network to ensure consistency. If the price is 0, there’s little incentive to participate (mine, validate etc), reducing the cost to attack the network, resulting in the entire network becoming useless.
Re: Warren Buffet and Charlie Munger on crypto in 2018
#77Earlier quoted context omitted.
Two real life datapoints. 1. A friend of mine has a small software consultancy. He usually works within EUR area. All fine and dandy there. Then there was a client in the US, they agreed on a USD rate for his work. He went to his bank to open a USD account, they did additional AML and KYC procedures and just refused to open a USD account. Didn’t even explain why, he’s not doing anything shady. So, the first USD payme…
1. Use paypal or a credit card, your local EURO based bank (or any other EU currency denominated one) will happily exchange the transferred USD into local currencies based on latest exchange rates. 2. Use Western Union.
1. PayPal are notorious, for many good reasons. Credit card companies have shown themselves up too; blocking donations to Wikileaks, for example. Then there's the decentralization factor.
2. Seriously? The time and expense of this compared to crypto is huge. Again, decentralization > single point of failure.
Being glib about real benefits and use cases is not helping the conversation here.
Re: Warren Buffet and Charlie Munger on crypto in 2018
#78Let's not forget that crypto had a huge crash in 2018, so nailing it wasn't too hard to do.
It's like "I predict it will crash again" woah...
Re: Warren Buffet and Charlie Munger on crypto in 2018
#79Regardless 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.
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Re: Warren Buffet and Charlie Munger on crypto in 2018
#80I'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.
Yes - but any decently-managed casino is extremely careful in managing their cash, cashflow, and fiat money supply (chips), to make sure that: (1) they make real money, and (2) their chips hold their value against real money.
Crypto, on the other hand...