Warren Buffet Is Pretty Certain That Cryptocurrencies Will End Badly

I’ll never consider something that has at least tripled my returns in a very short period time (three months) a bad investment. Getting it out is just as easy as putting it in was. Better to buy in, cash in on the hype, get out and collect earnings than sit on the sidelines hoping for a “crash” just so GPU prices come down so you can get a 5% FPS gain on PUBG.

We’ll see a major dump this year of most of the useless alt-coins. That dump will temporarily decrease the value of the most useful coins (and present a buying opportunity) only to have their value return even more so. The whole tech boom and bust is often referenced, but people forget that some of those companies pulled right on through and made some people very wealthy.

Those of us long crypto will either be right or wrong, but we’ll also have some ROI. Better some ROI instead of peanuts in your bank account, which I’m sure is another reason most of you knockers haven’t dabbled.
 
I’ll never consider something that has at least tripled my returns in a very short period time (three months) a bad investment. Getting it out is just as easy as putting it in was. Better to buy in, cash in on the hype, get out and collect earnings than sit on the sidelines hoping for a “crash” just so GPU prices come down so you can get a 5% FPS gain on PUBG.

We’ll see a major dump this year of most of the useless alt-coins. That dump will temporarily decrease the value of the most useful coins (and present a buying opportunity) only to have their value return even more so. The whole tech boom and bust is often referenced, but people forget that some of those companies pulled right on through and made some people very wealthy.

Those of us long crypto will either be right or wrong, but we’ll also have some ROI. Better some ROI instead of peanuts in your bank account, which I’m sure is another reason most of you knockers haven’t dabbled.


This is a pretty good summation of how I view things.

New technology certainly is disruptive
 
Do you mean that you are mining on a work computer or your computer at home you do a lot of work on?

Sorry... My main pc at home... Yes, I do work on it from time to time.. Mainly Civil 3d and premiere... It has two 1080tis in it. See my sig...

I think you quoted the wrong post. Let me help you out...





hmmmmmmm much better :)

Nope.. I didn't.. He made a valid post about new money... I just see stupid people keeping it going for awhile... I mine.... I don't Buy. But I agree, I don't listen to Buffett. He's loaded but I don't give a shit what he thinks

If mining goes belly up tomorrow I'll sell all my cards really cheap to everyone here at hard... Slightly used of course.
 
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Just like it never recovered after hitting huge highs of $1000 in 2013, then losing 80% of it's value in the coming months, doing nothing for a few years, then breaking out again in 2017?

People that think in absolutes like that are great at missing opportunities. There will be dark times again at some point I'm sure, BTC as a technology is pretty old by today's standard in terms of it's speed/cost, there are far better crypto solutions out there these days. In addition I actually agree that there are too many shitcoins out there these days that don't actually really do anything, doesn't mean the whole world will forever be dark for cryptos.

It's still the wild west out there in crypto world - there are smart ways to make money and at the same time insulate yourself, just like there are lots of stupid get rich quick types out there who are dumb enough to re-finance their house and go all in while the market is on a high.

https://www.hardocp.com/news/2018/01/15/price_manipulation_in_bitcoin_ecosystem

If this is true it will be the beginning of the end.
 
Everything that is said needs to be taken into context of the person speaking. Maybe you are mister super genious who just knows when its all going to happen. Maybe not. But most people are going to bite the dust hard on crypto. Just like most people lost out on the dotcom bubble. Warren is the greatest investor of modern times, his formula is about investing in companies and products which have long term solid businesses and practices. And personally I think that is what makes him the greatest investor, because he isn't just some clown who got mostly lucky throwing money at high risk investment or happened to be a hard worker lucky enough to be in the right place with the right backing at the right time. He has steadily grown his fortune on good long term value. Everything he says is true. Now that doesn't mean that no one can make money lots of people get rich off of bubbles if they get out in time. But Warren is speaking to the general populace and his words seem very fair and accurate. If you want to play the bubble game go talk to the gambling day traders not the worlds greatest investor. Warren has seen many, many bubbles I am sure he knows what they look like. And if gambling bubbles was an effective strategy then Warren wouldn't be the worlds greatest investor some other person would be.

So we all know based on this that cryptocurrencies are not a good long term value. We also all know that this current climate is a bubble. The question is when is it going to pop and how far will it fall. If you know the answer to that go be a billionaire. If you don't I think you should hedge your bets hard and get out while you can. When it crashes you can reinvest, if it doesn't crash you can still reinvest you wont lose much. Remember when you play in an uncontrollable unregulated market you are nothing but a small fish riding the waves. The strings are getting pulled by others. And you don't know how they are being pulled no matter how much you want to convince yourself you do.
 
I keep hearing how great block-chain is yet, I never see it mentioned outside crypto currency discussions. Been around, what 9 years, does it really have other uses? Yes I've read about what could do, I'm interested in what it is doing.

As to Buffet. I don't imagine he takes his money into casinos either.
 
okay.... So people from the "stock market", are calling this out.... Now correct me if I'm wrong.... These ARE the same people who crashed banks, gave out high risk loans, and needed government bailouts to say this... Right? Not warren in particular but..... What is a solvent system? One with regulation? We have seen how well that works... Wtf...
 
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oh yeah... Look up how many people who day trade actually make money in the stock market... It is pretty sad
 
okay.... So people from the "stock market", are calling this out.... Now correct me if I'm wrong.... These ARE the same people who crashed banks, gave out high risk loans, and needed government bailouts to say this... Right? Not warren in particular but..... What is a solvent system? One with regulation? We have seen how well that works... Wtf...
Yeah thank god the stock market isn't in a bubble and it's just cryptocurrency right?
 
okay.... So people from the "stock market", are calling this out.... Now correct me if I'm wrong.... These ARE the same people who crashed banks, gave out high risk loans, and needed government bailouts to say this... Right? Not warren in particular but..... What is a solvent system? One with regulation? We have seen how well that works... Wtf...

Theres a pretty big difference between the regulated stock market which has had big fluctuations but over the long term has performed well, and totally unregulated stuff where the swings can be catastrophic and the corruption has no checks at all. Cryptocurrencies are basically like playing the penny stocks. Pump and dump, wild speculation, 90% of the products are only there with no other point then to pump and dump or make a joke.
 
I'm pretty sure a part of it is jealousy. Others became loaded with almost zero effort.
 
I know nothing about something so I am going to comment on it... cool.


His lack of knowledge on Cryptocurrencies would make us seriously question what we think we know a lot about... He's being modest.
 
myself I have dabbled in Crypto for a long time, I agree with a lot of the big investors that this is only short term. There is nothing to back it in any way and its pure digital. Looking at the exchanges they simply close down when the market starts to drop too much to prevent those larger sellers from dumping the market. Not to mention the number of hacks and exploits that have been discovered I would not touch it unless you are a high risk trader looking for a fast score. I do think they will be around abit longer then buffet thinks but I think the small players will lose out in the end unless they are very aware of trends. If you look at the world players many countries are starting to Ban them completely which is creating a market slide as those investors are trying to get out well they can.

I do think we will see a regulated version of this soon which will have backing from banks and other corporations which will better protect this concept. In the mean time enjoy the fun like that of penny stocks of the up and down.

This is just my thoughts with all the information and research available out there :)
 
The actual blockchain does not shut down.

If you keep bitcoin on an exchange, you cant get to them when the exchange is offline.

If you keep your show shovel at home depot, you cant get to it when it snows on Christmas.
 
I am yet to see a proponent of cryptocurrency or blockchain in general explain how it will survive quantum computers making the technology obsolete over night. I haven't seen a quantum proof coin yet. I haven't even seen a theory for how one would be possible. Crypto is set up to be disrupted to its core.
 
I am yet to see a proponent of cryptocurrency or blockchain in general explain how it will survive quantum computers making the technology obsolete over night. I haven't seen a quantum proof coin yet. I haven't even seen a theory for how one would be possible. Crypto is set up to be disrupted to its core.
I think worrying about quantum computers disrupting things right now is a little like worrying about Netflix disrupting video rentals in the 80s.
 
He's always been big on actually understanding your investments. He gave similar advice before and after the .com bubble.
Except he was also pessimistic on Apple, Microsoft and tech companies in general because he didn't "get" them.. and then later had to go on TV, hat in hand, and with tears in his eyes admit he was way wrong about tech and beg forgiveness.

Old fart from the model T era doesn't "get" crypto just like every grandpa that didn't "get" the Internet and Netscape Navigator in the mid 90s because "I already have AOL what do I need that for".
 
Except he was also pessimistic on Apple, Microsoft and tech companies in general because he didn't "get" them.. and then later had to go on TV, hat in hand, and with tears in his eyes admit he was way wrong about tech and beg forgiveness.

Old fart from the model T era doesn't "get" crypto just like every grandpa that didn't "get" the Internet and Netscape Navigator in the mid 90s because "I already have AOL what do I need that for".
You don't need to 'get' everything though. You only need to 'get' what you choose to invest in. No harm no foul.
 
I am yet to see a proponent of cryptocurrency or blockchain in general explain how it will survive quantum computers making the technology obsolete over night. I haven't seen a quantum proof coin yet. I haven't even seen a theory for how one would be possible. Crypto is set up to be disrupted to its core.

Coins will (and are) migrating away from elliptic curve digital signatures and using quantum-resistant cryptography.

If you are familiar with Vera Crypt, they employ something called PIM. This slows down brute force attacks on AES encrypted files. That is kind of the idea with these newer coins.

The mining also often uses more than one script format, meaning an attacker must have the majority of the hashing power for multiple forms of encryption, all of which could be the 'winner' of the next block found.
It's a good way to force larger miners to break up their equipment into smaller units. Imagine needing five super computers dedicated to destroying a currency rather than one. The opportunity cost becomes unreasonable and exponentially more and more unlikely to succeed. And if they managed to compromise a single block on one particular format, the block behind it is protected by what is likely a different variant of encryption. Plus the community would reject their blocks and they would have wasted their money.
 
I don't see anything stopping it now. The crypto era is over. It will linger on but without anyway to convert it to real money its useless.
 
I don't see anything stopping it now. The crypto era is over. It will linger on but without anyway to convert it to real money its useless.

Please do explain how crypto era is over when crypto market cap is the same it was 3 months ago and 8 times as much as it was this time last year.
 
Please do explain how crypto era is over when crypto market cap is the same it was 3 months ago and 8 times as much as it was this time last year.

So the institutions that actually control real money have declared war on the crypto world. Not sure if you have been reading the news lately or not.
 
So the institutions that actually control real money have declared war on the crypto world. Not sure if you have been reading the news lately or not.

No they haven't, a lot of them have actually started to embrace crypto.
I think you misunderstood those news.
 
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