He clearly says his #1 problem is he doesn't understand cryptocurrencies at all and that's why he wouldn't buy any and assumes its failure. This is a dude who owns a flip phone; can you imagine YOUR 86 year old grandpa understanding cryptocurrencies? I love buffett but he's just not an authority on this.
He said it best himself in regards to bitcoin: "why would I take a position with something I don't know anything about". Thank you for your honesty Warren
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"they will come to a bad ending'. Take heed of Warren Buffett. The bubble has burst and he understood. He has lived through a dozen bubbles and he knows what is going on. He was right.
@@davidgrey9287 I would not say that he is clueless. He freely admits that he does not know how to time a market. He is wealthy and buys value. Value survives. He sold his energy stocks. They do not hold value any longer. He is not clueless.
@@aaryanmehta4609 but you don't understand. If it hasn't burst RIGHT NOW, then he's wrong. It's not like the dot com bubble lasted nearly 2 years. In all seriousness, he is applying long term logical thinking, while people who buy bitcoin are applying short term speculative thinking.
My first investment with Mrs Rose Maria gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known
Internet comoanies had value, bitcoin does not. Its still a bubble. Duration depends upon the number of greater fools. And there are millions of them in this case.
Crypto currencies were a complete gamble, not even the inventor of Bitcoin could believe the stock would go up, even less this high, but of course the crypt-crash has occurred and the panic settled in so the crypto hysteria is over. There's a reason why other crypto currencies weren't nearly as successful as bitcoin, it's about being in the right place at the right time.
He’s trying to be kind and say he doesn’t understand it so he won’t invest in it. What he means is…why would I waste my money on something with no value. I agree, this will have a bad ending. Some will become rich and get out early and a lot of other people (probably young people) will hold and get crushed.
The number of different cryptos is increasing 2% per week. In one year there will be over 4,000 different cryptos. In two years there will be more than 11,000 different cryptos. This is crypto hyperinflation. All cryptos are at risk of severe devaluation from the ever-expanding supply and competition.
big boy - you read the news lately? buffet was right. www.bloomberg.com/news/articles/2018-09-12/crypto-s-crash-just-surpassed-dot-com-levels-as-losses-reach-80
Its not just an investment it is an opportunity to for people to make transaction without the need of a financial institution. Bitcoin was made to give more freedom to people so i dont know why there is such a negative reaction from people. Perhaps the media has raised their sheep well.
that's an ignorant statement. the bank is not there just so they can make a transaction for you. a bank is there to protect your money. if someone hacks your bitcoin wallet and rob you of your bitcoins, no one's going to care about your tears. no one can do anything about it either. if your debit card or credit cards gets hacked and funds are used without your permission, your bank will take responsibility and reimburse you. at least mine does (hope yours does as well or you are with the wrong bank). before we go around trying to get rid of banks, let's figure out how to protect a "freedom' digital currency like bitcoin first. too many opportunities for people to get hacked and robbed on the WWW (World Wide Web, or more appropriately, the WILD WILD WEST)
I remember this interview and I was looking forward to hearing what he was going to say about shorting and then Melissa Lee interrupted with a moronic question and brilliant insight from a genius was lost because of a poor interviewing technique.
He never made a cent on tech. He makes money on corn futures, real estate, oil, mining, etc... Different type of rich. Bill gates was quite excited about blockchain and specifically Bitcoin, look it up.
LOL, he finally believed in 2016. From the article on his buying Apple stock last year, for the first time ever. Buffett has been famously wary of technology stocks in the past. He’s known for saying, “If there’s lots of technology, we won’t understand it.”
For God so loved the world, that he gave his only begotten Son, that whosoever believeth in him should not perish, but have everlasting life. John 3:16 KJV, Jesus Christ is the only way
yeah bitcoin was $1000 and it was a bad investment. here i am with almost 2000% profits when bitcoin was $20k. life is easy old man, buy before the hype, cash out before the bubble burst and buyback after the crash. we are not simple minded like old man that only know black and white.
What do you mean buy before the hype, apply that logic to other stocks and see your money being eaten out by losses and commisions boy. The key to warren buffet is his massive consistency, if you play only one stock and pray for it to go up you are not consistent, you are a lottery winner, please don't compare yourself with the mastermind of Warren Buffet.
I diversified to many other cryptos as well, ended up making more profit. If what i did was merely luck, then so does warren. Cryptocurrency is too hard to comprehend and too scary for old people. Don’t even bother come to Bitcoin video if you are that salty old man, your generation is dying anyway. Its time for milennials to clean up your mess
What? CAPM? IRR? those are just basic calculations that I took in the college, you don't have to use it. I cant believe knowing basic calculation makes you smart. Yeah probably i need some algebra and law of thermodynamics to increase my portfolio returns
@@TexasGolfer Yup compare someone who has more than 60 years of investing time with someone who have less than 10 years of investing time. That's fair. If you followed Warren buffet you should have learned that time plays a big role in compounding. I have achieved higher (percentage) returns than Berkshire Hathaway. Have you seen the price of Bitcoin?? If I had the cash of Berkshire Hathaway then i would have provided a better shareholder value than Warren buffet. If you invest in S&P 500 in the last few years you would have done better than Warren buffet. Berkshire Hathaway have been underperforming the S&P 500.
@@omarfarique6304 🙄 You compared with Buffett when he was you age is still no comparison. At no point in your life did you or will you ever have more success than he has had. He started with just himself as a very young teen with his own money and built up everything he has, so now what is your excuse? In fact, your complete lack of respect for what he achieved in his life is exactly why you will never achieve it. Because you do not respect it proves you do not understand the enormity of what he did in his life. He is literally the Michael Jordan or Tiger Woods of finance. You could not do what he did in 2 lifetimes. You are in essence saying you are better than Jordan and Tiger and you don’t get how stupid that makes you sound. You don’t get it because you are young and dumb. Maybe you will grow out of it.
@@TexasGolfer I like how you changed the whole subject. Warren buffet prediction was horribly wrong for Bitcoin now it's time for you to admit that. If someone invested in Bitcoin he would have made way more than Berkshire Hathaway (Percentage wise). And I'm 21 years old. Warren buffet has been investing more than I have been on earth. So this is fair comparison according to you? And I have made higher returns in the years I have invested compared to Berkshire Hathaway so yes I did beat Warren buffet. I'm 21 years old and I have turned $7K into $50K in less than 2 years. And I hope to make $100K by the end of this year. This is a higher percentage than what Berkshire Hathaway had made in the last 5 years combined and this is more than what most 21 years old have done. Sure I might never reach Warren buffet level of wealth but I'm confident I'll reach the level of wealth that 99% of the people won't be able to reach. And you never know the future of anyone. I might be the richest man in the world by the time im 60 and this will be a funny moment. So you basically made a prediction without knowing anything about the person and that my friend is a bad investment strategy.
First off, I have huge respect for this man, from the 0:37 mark, Mr Warren Buffet explicitly says crytpo is something he doesn't know anything about(yet he is so against it) but what I'm really curious about is why does he seem so guarded...almost like crypto is some kind of threat. That makes me wonder...
He knows stocks in general, and he knows that a stock can't maintain hysteria for decades, it would only be a matter of time before the stock buyers would think the stock had reached it's peak and sold all their shares, creating an hysteria of selling and eventually stabilizing the stock for a level which it will maintain for some time, it's not the first or last time this has happened. Also, spoiler alert, Bitcoin crashed.
There's no such thing as "intrinsic value." All value is entirely subjective, and always has been. Prices are based on supply and demand only, and demand is based on subjective marginal utility. Fiat currencies and bitcoin both have value because of Mises' regression theorem. You're out of your league here, not me.
Warren Buffett wouldn't bet against the BTC but the bubble. And the inner value of BTC is almost zero because no-one uses it to transfer money and the fees are higher than Paypal or a bank transaction. So it's worthless for consumers.
There is such thing as intrinsic value. There are products with a demand that can't get lost. For example food or property. The term intrinsic value comes from Graham and it describes assets which got a worth even if the company which owns it sells it. You should learn more about investing Edward.
Central bank manipulation of fiat currencies have created a bubble for fiat currencies. Hyperinflation will come, after severe asset deflation due to interest rate hikes.
not about fiat and banks anymore, ico's jumped on crypto and market is flooded with ico's. Some of them have nothing to do with blockchain they just tokenize the business to ride the wave and when these business do not produce any value and start to fail the market will collapse. Money is not on bitcoin anymore it's shifted toward Ico's now
Gentleman Hack the shill ICOs are a blight on cryptocurrency. Buyers beware. It is really no different from the dopey stocks that are worthless and schlepped as great opportunities. Your comment is insightful. Thanks.
@@OfficialHobbitFan btc is the needle fiat money is the bubble bitcoin unlike fiat has no inflation can t be controlled by the government and can t be printed
I have been following the blockchain / cryptocurrency topic for years (since before the laws on the subject were enacted in the world) but I must admit that this man is impressive. He is able to understand the human being and therefore the economy as very few in the history of humanity are able to do. In the past I believed that he was wrong and did not understand the sea change taking place with cryptocurrencies. Then, I researched online from reliable sources about who he was and realized ... he's a demigod
@@coreykleinman7902 Careful, I'm not so sure. It makes more sense to invest in the stock market by buying real stocks rather than buying cryptocurrencies now. Cryptocurrencies had to be bought by 2017-2018 when, that is, others laughed at those who bought these strange things (as always happens...). They were growing 500%, 1000% even more because there was demand and there were no laws across the planet to regulate and tax them. Now, it's just a bubble...
@@coreykleinman7902 the majority of cryptocurrencies are worth nothing. The great speculation occurred within 2917-2018, when there were no laws on the Planet. Now, they are fleecing those who believe that it has become a real market because it is talked about on the stock exchange and in the news no longer to say that it is a scam but, instead, "a serious thing". Soon, the "lords" who made cryptocurrencies legitimate (and who bought them) will tell their servants (politicians and journalists) to turn off the tap. They will sell everything, earning billions, and the poor people who had trusted the institutions will lose their savings. In this historical period, cryptocurrencies and Blockchain technology in general are like dying horses that are given doping substances to make them run again. Even the phantom security of the Blockchain and, therefore, of cryptocurrencies, no longer exists since the invention of quantum computers.
It's detrimental to society because it encourages greed, and instead of investing on the stock market and financing real business, the money is injected into this bs, hindering industry. All it's proponents claim it's some kind of crusade against the fractional reserve banking system but deep down they know they're only in it for easy money, which most can't make anyway, that is literally impossible.. Just a ponzi scheme. Will probably go down in history as the biggest collective delusion and mass idiocy in human history.
I love how internet kids with 0$ in their bank account think they know more about financing than one of the world's greatest investors like Warren Buffett
Crypto is good to gamble and reap in the rewards now....But countries will never give up their power over currency, especially to Bitcoin. Bitcoin will never be "legal tender". Countries will come up with their own cryptocurrency/digital currency, why would they use Bitcoin or any other crypto?
This just shows that we as humans are evolving. 1000 years ago no human will understand how Buffett makes money. And today we don't understand how in 1000 years in the future people will makes money.
Some of the alt coins are not simply "currencies" (whether it's a real currency or not is a moot point), but they ARE established businesses who did an ICO instead of an IPO. Buffett, with all respect for his amazing record, should really say nothing about things he admits he knows nothing about.
I'm pretty sure he will have a bad ending before BTC has a bad ending. FACTS: - Buffett is not even capable to make a phone call from a smartphone - Buttett misses ALL the new economy trains (Google, Amazon, FC etc ....) ... so why do some people think, he is now a Crypto expert .... that's just stupid !!!!
Like he said he doesnt understand much about Bitcoin. Cryptocurrencies are here to stay but those with no fundamentals and just riding on hype will definitely come to a bad end. Thats why I research a lot before investing. I have bought some litecoins, Monero and DeepOnion. Litecoin since it is faster and cheaper than bitcoin. Monero is a privacy coin and DeepOnion is a low market cap TOR based privacy coin. I especially believe in it due to its active development team that updates on every single detail about the project, its huge community and upcoming features like DeepSend, Votecentral and Smartcontracts additions.
@@noobmojo9196 I know he is Warren Buffet, my father is a former bank Director for 30 years and hardly understand blockchain either. They are very old already-- we'll probably gonna hardly understand the future technology too so embrace the today's challenge
Why you all hating on Buffett? He has VERY good reasons to think that Bitcoin and cryptos as players will end bad. It's pattern of behavior and you don't have to be an expert in a particular field, you just have to analyze the ecosystem and recognize the pattern. EDIT: I'm invested in crypto.
People don't like being told they're wrong. Many have invested all the money they have in these currencies without knowing a thing about them. There may be some short term financial gain but I don't believe Buffet thinks in the short term.
Millennials are thinking long term and many will never cash back into fiat. This is a one way ticket. I will either ride it to the top or crash and burn. I am betting on this technology and until my crypto vanishes from the blockchain, I am all in!
crypto has been in a free fall for a long time now and not showing signs of recovering. i had 6k usd worth of crypto before the fall and it is now worth 1.3k usd with zero signs of ever going back up. when the market for crypto fluctuates that much it becomes worthless in today's world as a means of currency. it simply is not stable enough. 1 usd today will still buy you that candy bar next week guaranteed. however crypto might jump or drop so much you cant know if you can buy something next week or not.
Hes 88 yrs old in 2018. Lets say he dies within 11 yrs. Crypto will have gained some really nice traction during such a time. Never say never but if he doesnt take a position, he will have missed this train. But for someone thats in his position now, who cares if he does. This is a baton for us to takeover & run with
> Eats mcdonalds and dairy queen and drinks several two liters of coca cola every day and then claims "I'm in remarkably good health!" > Gives investing advice on cryptocurrency "It's not gonna end well!" > Continues giving advice "Why would I invest in something I know nothing about?!"
Conservative rich investors like Buffett, they are afraid of new innovative inventions who can break down there's monopoly and make fairer market. Sorry for my english.
To put into perspective, someone paid 450 million usd for a salvator mundi painting. Millions of dollars for a paint arranged in a canvas only to sit at a yacht somewhere and be forgotten by the owner. Yup, value is just relative...
Just because hes wealthy it doesnt give him the access to the fountain of wisdom regarding new tech. I hope Buffett lives long enough to see what a fool he was. The price of bitcoin is going to be worth so much more in 2-5 years it's a joke.
Remember guys, Buffet didn't believe in, and did not invest in companies like Amazon, Google, FaceBook, and rejected Bill Gate's invitation to invest in Microsoft so you decide if you want to listen to buffet or not
I want to look 5 years from now at this. One thing is certain right now though, fiat currency is coming to a bad ending. And if there is no fiat currency, then what?
we are a slave to this system. slavery has never ended, it just has evolved to include all of us. cryptos are freedom. the world government will never allow it to succeed. we have to understand their game and play along with them
@@GH-uo9fy And it lost $150 billion last month, get REKT kiddo, back to mommy’s waifu pillow you go. Like heck, it is based on the currency it is trying to compete with, what a fad currency bitcoin is you plebs believe 😂👌
He just openly said he’s not going to take a risk on something he knows nothing about. Take warrens advice with a grain of salt, he’s smart of course but nobody knows everything
People said the same thing to him when he didn't invest in the tech bubble of the 90's. That he's old and does not understand the "new economy". How did that work out???
Please look at tech companies and their value right now, thank you. Also, you are a fool if you believe these coins will keep living forever, but you are also a fool if you think every single one of them will crumble. If you knew anything about blockchain technology you would realise how usefull it is, not just with currency.
Everyone in the comment section: doesn't really understand crypto themselves but uses it against Buffett. That's what he meant - the workings of this currency is so esoteric that laymen won't use it. What's the sell of this type of currency then?
Just a little quote by John Keynes why Buffett never shorts anything: 'The Market Can Remain Irrational Longer Than You Can Remain Solvent' Especially what are the chances of shorting: You can get a maximum of 100% without leverage. So if you are right to short the maximum you can do is double your stake. The risk is that you are wrong and you lose more than your stake. Even more than you actually have because bitcoin could go to 1 billion for example.
Not with put options. The maximum you can make is almost infinite, depending on the strike price. You will also never go broke buying puts as there is no margin call. You only risk the premium you paid.
There are no put options on BTC (like said in the interview) and the only way to participate on the downside of BTC is to short BTC which means to risk everything you own and even more.
Buffets in a precarious situation his investors will be saying its an opputunity that is being missed... He even admits he does not know enough about it. People need teaching.
*Update: He is right. Half of the market cap of Bitcoin is gone already* If you look at the bubble of the .com era (buffett called that one too) it literally matches TO A TEE the charts of bitcoin.
This gentleman is saying "almost with certainty" cryptocurrency will have a bad ending yet hes not willing to place his money where his mouth is. Older people don't understand technology and we cannot expect them to.
He doesn't know a thing about something but he knows how it will end? He probably thinks writing checks is still a viable payment method at the supermarket and that it wont go away....even though it has
I think there will be some amount of truth in what he’s saying ... at least some of the cryptocurrencies will end up worthless and it’s impossible to predict which ones.
cryptocurrencies are the future . yes there might be downs and yes bitcoin might crash but one of these coins are going to be the currency we use for our daily life , its just is . future need speed and use of technology to develop
He says he doesn't know anything about cryptocurrencies so why does he say they will have a bad ending? Warren Buffet is a brilliant investor, but he's frequently said that he does not know much about "high tech". In this case I think he's wrong. Most cryptocurrencies will not survive, I agree with that, but there will be a few that do survive and they will have the potential to change how we sell and purchase goods and services for a very long time.
If you dont want to take a short position on something you dont know about, what makes you qualified to make an opinion in that something that you dont know about?
sebastian elytron - bitcoin CRASHED BIG...how's that working out for you now? maybe you been smoking too much weed? www.bloomberg.com/news/articles/2018-09-12/crypto-s-crash-just-surpassed-dot-com-levels-as-losses-reach-80
“I don’t know anything about Crypto, but let me give you a lecture why it will have a bad ending...” remember he didn’t believe in Apple either until recently his team forced him to buy it... classic dinosaur logic...
Blockchain is real. There are some get projects coming up that are solving world problems. WaBi ico is solving the problem of counterfeits in food. For example, the app found out that Fanta, food coloring, and pop tarts has chemicals in their products. Later the FDA disapproves it. But in China they found counterfeit whiskey and beer. A lot of arrest occurred in China. Substratum is solving the problem of government trying to control the internet. Other than the United States, it's a big problem in China and Iran. BlockMedx is solving the opioid and drug prescription not only in the United States, but the world.
