Buffett: Bitcoin not a currency [video]
video.cnbc.com
Buffett: Bitcoin not a currency [video]
1–10 of 66 posts
Re: Buffett: Bitcoin not a currency [video]
#2His argument (that articles priced in bitcoin change their priced based on the value of a fiat currency such as USD) is valid as a qualitative judgement of bitcoin's utility as a currency, but isn't really a valid test of what is or isn't a currency.
Case in point: The Zimbabwean dollar remained a currency through its hyperinflation period, and is still considered a currency (however useless) even though it is no longer the official currency of Zimbabwe. Now that Zimbabwe officially accepts relatively stable foreign currencies, prices of goods have stabilised in that country.
Re: Buffett: Bitcoin not a currency [video]
#3His argument (that articles priced in bitcoin change their priced based on the value of a fiat currency such as USD) is valid as a qualitative judgement of bitcoin's utility as a currency, but isn't really a valid test of what is or isn't a currency. Case in point: The Zimbabwean dollar remained a currency through its hyperinflation period, and is still considered a currency (however useless) even though it is no lon…
The analogy with the Zimbabwean dollar seems appropriate. Most of its value, too, accrues to miners and FX traders.
Re: Buffett: Bitcoin not a currency [video]
#4I cannot see it because it is flash only but is this from the same interview where they only ask him about bitcoin at the end for like 3 sentences?
Oh here it was, page 24
https://docs.google.com/gview?url=http://fm.cnbc.com/applica...
Re: Buffett: Bitcoin not a currency [video]
#5His argument (that articles priced in bitcoin change their priced based on the value of a fiat currency such as USD) is valid as a qualitative judgement of bitcoin's utility as a currency, but isn't really a valid test of what is or isn't a currency. Case in point: The Zimbabwean dollar remained a currency through its hyperinflation period, and is still considered a currency (however useless) even though it is no lon…
The Zimbabwean dollar analogy is appropriate. Throughout its wild swings and hyperinflation, it was backed by a government. Bitcoin is backed by nothing at all.
One is a currency, the other is a commodity.
Re: Buffett: Bitcoin not a currency [video]
#6I cannot see it because it is flash only but is this from the same interview where they only ask him about bitcoin at the end for like 3 sentences? Oh here it was, page 24 https://docs.google.com/gview?url=http://fm.cnbc.com/applica...
Yup, this video is a subset of that interview. Thanks for the transcript, by the way.
Re: Buffett: Bitcoin not a currency [video]
#7I cannot see it because it is flash only but is this from the same interview where they only ask him about bitcoin at the end for like 3 sentences? Oh here it was, page 24 https://docs.google.com/gview?url=http://fm.cnbc.com/applica...
Yup, this video is a subset of that interview. Thanks for the transcript, by the way.
Would have posted it but for some reason HN has taken away my posting privileges.
All my links are auto-dead now. I can only comment :-(
Re: Buffett: Bitcoin not a currency [video]
#8His argument (that articles priced in bitcoin change their priced based on the value of a fiat currency such as USD) is valid as a qualitative judgement of bitcoin's utility as a currency, but isn't really a valid test of what is or isn't a currency. Case in point: The Zimbabwean dollar remained a currency through its hyperinflation period, and is still considered a currency (however useless) even though it is no lon…
The Zimbabwean dollar analogy is appropriate. Throughout its wild swings and hyperinflation, it was backed by a government. Bitcoin is backed by nothing at all. One is a currency, the other is a commodity.
How do you establish a new currency? Well it is easy, you take control over some area of land, by military force or by treaty with the present occupiers of it, then you declare that the people living there need to pay you taxes, then you decide what to accept those taxes in. And that's what it means for a government to "back" a currency.
Re: Buffett: Bitcoin not a currency [video]
#9Just after the first world word, cigarettes were used as currency in Germany. Currency is simply anything that is accepted as a medium of exchange. That's all what makes currency a currency - doesn't matter if someone doesn't like even for (supposedly) good reasons. :)
Re: Buffett: Bitcoin not a currency [video]
#10Earlier quoted context omitted.
The Zimbabwean dollar analogy is appropriate. Throughout its wild swings and hyperinflation, it was backed by a government. Bitcoin is backed by nothing at all. One is a currency, the other is a commodity.
How do you establish a new currency? Well it is easy, you take control over some area of land, by military force or by treaty with the present occupiers of it, then you declare that the people living there need to pay you taxes, then you decide what to accept those taxes in. And that's what it means for a government to "back" a currency.
Considering all of the uproar caused by the Newsweek article, if people knowing you have bitcoins puts you in danger, then I'd say it's not a currency I want anything to do with.