Warren Buffet Is Pretty Certain That Cryptocurrencies Will End Badly

RogueTadhg said:
As an investor, I don't really follow Buffet's way of trading. His thinking isn't wrong. From his standpoint and following what he knows, it is a bad investment. The way he invests is by doing research, history, earnings, etc. He's a technical trader.

As far as saying that it will "end badly" everything will end "badly" when given enough time in the universe to allow it to happen. What I think he should say is you need to approach crypto currencies with caution and do a lot of research about them. For many, this won't be a get rich scheme and realize that you don't really make any profit until you cash your earnings. A lot of people I see go into mining to drop out once they hit ROI and get their money back - which will take a lot of months. You've got to have luck or a lot of capital to make a lot of money in it.


Now there's a lot of talk about nVidia dropping production of the 10 series to make way for Volta. Miners will soon be dropping their 10 series like a brick wall on the economy if the 11 series is better.
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Good points all around. I'm a small time miner in the grand scheme of things. I dabbled some back in the early days on my 6950's and 7970's before the first bust all those years ago (made money and got out). I got back into it last year only because I was considering upgrading my 1070 and saw what was going on with the market, what it could produce, and where things were going. I slow rolled my profits over and over into more hardware over about 6 months. I'm not about to risk my own money on any of it, much prefer to play with house money :) On top of it all, I love building machines/rigs/researching all this stuff. There is indeed an element of luck. I got lucky because I picked Ripple and Verge early on as something to hold onto. It's all worked out quite nicely so far. I've had friends or people I know approach me and are curious about the whole thing but just have the wrong mindset for it. Saying "well I want to get rich really quick and not have to do anything" just makes me laugh because that's the wrong/stupid attitude.

The thing I always tell anyone about any of this is sit down and just start crunching the numbers of what's possible and what things cost. To me, it's a hobby that puts money back in my pocket, I'm not fooling myself though. I never at any point expect to be some overnight crypto millionaire, but if things go well for a little while longer I do fully expect to pay off my house with this stuff :)
 
bugleyman said:
I don't think he was referring to entropy. ;)
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Same principal applies to our long established stock market, or housing market. Prices/value will not forever keep going up. Corrections or crashes over enough years or decades are inevitable. I bought my house in 2013 right after the bloodbath in the housing market was ending, not for investment purposes or anything, but seeing it's value nearly double in 5 short years is always a nice feeling, but at the end of the day I don't really care since it's primary function is a home :-p
 
The crazy pumping and dumping started with thousands of short lived cryptocoins, grew a "cryptex" community which outgrew the shady little coins, and migrated to the more common coins. When enough people start to lose big on the "mainline" coins, there will be a different view of cryptocurrencies. At which point there will also be a paradigm shift since the protocol that manages the verification of transactions will actually be doing some good (useful processing), and not just wasting electricity on hashes.

The tone coming from chart traders will eventually change.
 
Bitcoin / Blockchain technology / Crypto doesn't need Warren Buffet or any of his old guard.

Hurry up and fall over, old man.

Your time is up.

- The Future
 
SixFootDuo said:
I have a 1080 ti system on craigslist in Kansas City ... just got an offer for $3,000. Might take it. Probably won't.
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Probably fake offer unless that person is a dumbass, could just go to Nvidia website and buy an Titan Xp
 
oblox said:
I know nothing about something so I am going to comment on it... cool.

Someone quick, phone up the Kardashians for thoughts on how to handle the USA/NK situation.
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You don't have to know anything specifically about cryptocurrencies to be able to predict that there will be pain down the road. Compare the chart to every other bubble in history. This all ends the same way. I've been watching people online talking about buying "Bitcoin stock", with one guy saying "I think it's only gone down like once before". Basically you have a ton of dumb money from people wanting to get rich quick not understanding the first thing about what they're buying, combined with stubborn investors who have convinced themselves that a currency with insanely high transaction fees and long transaction times is somehow going to replace the US dollar. You honestly don't need to understand the first thing about cryptocurrencies at this point to be able to identify what's happening as a serious problem. This isn't a question of if the bubble will burst, but when at this point, and there will be a lot of retail investors HODLing the bag, as their always is in these situations.

I still find it hilarious seeing a bunch of 19-24 year olds who found out what blockchain was literally 3 weeks ago now saying that Warren Buffett somehow isn't smart enough to figure this whole investing game out.
 
Things only become tangible, of worth, when someone gives it a "value" and others are willing to buy/sell/give it for the value, look at gold, or sand, or even water, it is only "worthless" when someone decides something is worthmore.
"mining" for coins, uses a bunch of electricity for a "gain" no different than many other forms of entertainment, how much electricity do you think folks burn playing high end games with crazy high end liquid cooled multi-gpu systems?

Mining is as "useless" as most other forms of entertainment, just depends on how one looks at it ^.^

Kind of wish those in "charge" that want to treat it as an income source would ask key details such as how much power was "wasted" at what cost, how much did the system cost to allow the "work" etc, and not just chalk it up as a straight
income generation source, they always seem to have sticky fingers to "profit" not care about the cost of course, greedy bastards lol.
 
RogueTadhg said:
As an investor, I don't really follow Buffet's way of trading. His thinking isn't wrong. From his standpoint and following what he knows, it is a bad investment. The way he invests is by doing research, history, earnings, etc. He's a technical trader.

As far as saying that it will "end badly" everything will end "badly" when given enough time in the universe to allow it to happen. What I think he should say is you need to approach crypto currencies with caution and do a lot of research about them. For many, this won't be a get rich scheme and realize that you don't really make any profit until you cash your earnings. A lot of people I see go into mining to drop out once they hit ROI and get their money back - which will take a lot of months. You've got to have luck or a lot of capital to make a lot of money in it.


Now there's a lot of talk about nVidia dropping production of the 10 series to make way for Volta. Miners will soon be dropping their 10 series like a brick wall on the economy if the 11 series is better.
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Clearly you don't understand Buffett's style. He's not a technical trader, he's a fundamental value investor. Cryptocoins would never appeal to him in the first place because there is quite literally nothing backing it. Go read his letters about gold investing, it's the same thing.

That said, he doesn't need to understand cryptocurrencies to be able to make that statement. This is following the same pattern as every other mania in history. Everyone can see it, Buffett can see it. He's not going to bother jumping into something he knows is heading for a disaster. Cryptocurrency technology will likely find applications in banking going forward, but to suggest that Bitcoin is going to replace the US dollar like some people are suggesting is simply nonsense. Bitcoin itself sucks as a currency, and yet it commands a price of over $13,000 USD right now, go figure.
 
Ironic thing is. There will come a time when the new money inflooding dries up. Right now everyone is winning cause of all the new blood. When the new money dries up, and the markets start pulling back everyone will lose...hard.
 
I've been making money... Not millions, but enough.... Mining is a fun hobby. I'm not out a thing if it goes belly up... $60 a day for two months from a small investment.
 
Master_shake_ said:
what is the worst that would happen if the bottom fell out of the crypto market?
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It could trigger a large recession. Once the main stream media started following crypto a lot of people who really have no idea what they are doing started getting into the speculation. The higher it goes the more main stream players are willing to bet more on the market. Many of them know they aren't in it long term. When the plug gets pulled people are going to lose homes, lives etc..... This is the first time we have seen a lot of average joes try to get into it not from the mining side.
 
Archaea said:
Ironic thing is. There will come a time when the new money inflooding dries up. Right now everyone is winning cause of all the new blood. When the new money dries up, and the markets start pulling back everyone will lose...hard.
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I won't "lose" anything. If I scale up my mining "operation", it will be done in a low risk, sustainable fashion.
At the end, I'll just have a bunch of paid for hardware.
 
hlfbkd420 said:
I've been making money... Not millions, but enough.... Mining is a fun hobby. I'm not out a thing if it goes belly up... $60 a day for two months from a small investment.
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I think a lot of folks don't understand this. For us small scale miners, its basically risk free

Edit- change rent to risk. Stupid autocorrect
 
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atp1916 said:
Bitcoin / Blockchain technology / Crypto doesn't need Warren Buffet or any of his old guard.

Hurry up and fall over, old man.

Your time is up.

- The Future
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This kinda rings true...
I'm halfway of this opinion, and halfway "smart value" investments with my actual portfolio.

I think there is room for both.
 
Warren Buffet is worried that his money is old money. If the world migrates to cryptocurrency, suddenly dollars and euros could have less value. Personally, I love watching how this crypto thing is forcing people to ask what gives money value.
 
Archaea said:
Ironic thing is. There will come a time when the new money inflooding dries up. Right now everyone is winning cause of all the new blood. When the new money dries up, and the markets start pulling back everyone will lose...hard.
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Never underestimate stupid...
 
Master_shake_ said:
what is the worst that would happen if the bottom fell out of the crypto market?
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Well, the worst that could happen is the recently de-regulated banks are found to have invested hundreds of billions in the crypto market and need a multi-trillion dollar bailout to stave off bankrupcy, leading to a worldwide depression when Republicans refuse to do so.

Granted, that's unlikely at this juncture, but in theory any industry that overexposes itself could theoretically get dragged down with crypto.
 
RogueTadhg said:
As an investor, I don't really follow Buffet's way of trading. His thinking isn't wrong. From his standpoint and following what he knows, it is a bad investment. The way he invests is by doing research, history, earnings, etc. He's a technical trader.

As far as saying that it will "end badly" everything will end "badly" when given enough time in the universe to allow it to happen. What I think he should say is you need to approach crypto currencies with caution and do a lot of research about them. For many, this won't be a get rich scheme and realize that you don't really make any profit until you cash your earnings. A lot of people I see go into mining to drop out once they hit ROI and get their money back - which will take a lot of months. You've got to have luck or a lot of capital to make a lot of money in it.


Now there's a lot of talk about nVidia dropping production of the 10 series to make way for Volta. Miners will soon be dropping their 10 series like a brick wall on the economy if the 11 series is better.
Click to expand...

The problem in this case is it's not viable for GPUs to do crypto anymore; you lose more in electricity then you gain. It's all massively ASIC based at this point.
 
This is like taking advice from a horse and carriage salesman a couple weeks after the Model T came out. Warren Buffet is a bit out of his element here.
 
velusip said:
The crazy pumping and dumping started with thousands of short lived cryptocoins, grew a "cryptex" community which outgrew the shady little coins, and migrated to the more common coins. When enough people start to lose big on the "mainline" coins, there will be a different view of cryptocurrencies. At which point there will also be a paradigm shift since the protocol that manages the verification of transactions will actually be doing some good (useful processing), and not just wasting electricity on hashes.

The tone coming from chart traders will eventually change.
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No they won't. The problem with all crypto-currencies is for the most part, you can't DO anything with them. You're literally creating nothing for cash return, with investors essentially trading nothing between themselves in order to prop up value. It's simply not sustainable, and honestly looks a lot like the housing bubble before it popped.

collegeboy69us said:
Same principal applies to our long established stock market, or housing market. Prices/value will not forever keep going up. Corrections or crashes over enough years or decades are inevitable. I bought my house in 2013 right after the bloodbath in the housing market was ending, not for investment purposes or anything, but seeing it's value nearly double in 5 short years is always a nice feeling, but at the end of the day I don't really care since it's primary function is a home :-p
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You know, I was starting to wonder if I was the only person left who viewed a home as a place to live in, rather then an investment vehicle.

Seriously, if you purchase a house for $750,000, and it's price drops 75%, guess what? It was worth purchasing for $750,000; tough luck you purchased at the top of a bubble.
 
gamerk2 said:
The problem in this case is it's not viable for GPUs to do crypto anymore; you lose more in electricity then you gain. It's all massively ASIC based at this point.
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Not for Monero. GPU and surprisingly CPU are still good for mining.
 
Ofc it will end badly, wealth does not pop out of thin air.
A lot of ppl will lose a lot of money.
Ppl might make a quick buck out of it in short term but on the long run its a 100% loss
 
I do see the bubble popping, but seriously who doesn't?

What I believe will happen post is that certain factors(more than I have knowledge to comment on) may change creating a more realistic and stable system. The extreme spikes will minimize much like the stock market except for major events. I'm pretty sure cryptocurrency is here to stay, it just has some evolving to do.
 
gamerk2 said:
The problem in this case is it's not viable for GPUs to do crypto anymore; you lose more in electricity then you gain. It's all massively ASIC based at this point.
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It is? Well shit.... Guess I should tell my 12 GPU's to stop mining.. That $60 a day income and $100/month power bill is losing me money...

/sarcasm
 
DukenukemX said:
Warren Buffet is worried that his money is old money. If the world migrates to cryptocurrency, suddenly dollars and euros could have less value. Personally, I love watching how this crypto thing is forcing people to ask what gives money value.
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God forbid the housing market or property market become the new red head stepchild then we will see a boat load of "bankers" fly :)
The idea that you don't know much about crypto currency is because it is not as death trap as all the other means of investments are. And with any investment opportunity big players still swing the markets so what exactly is there to not understand.

Maybe Warren can hire me , I'll explain it to everyone here:

Have money in property then the properties market goes down then your money goes down.
Have money in crypto currency then the crypto currency market goes down so does your money.

I have to admit this might be a bit weird but it ends up the same for all of it.

If that does not help you think of it as a slot machine , you keep pouring money in but there is no guarantee that the same amount (or more) of money comes pouring out ....
 
hlfbkd420 said:
It is? Well shit.... Guess I should tell my 12 GPU's to stop mining.. That $60 a day income and $100/month power bill is losing me money...

/sarcasm
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It isn't income until you cash out and crypto isn't that liquid. Some caution would seem prudent.
 
Todd Walter said:
It isn't income until you cash out and crypto isn't that liquid. Some caution would seem prudent.
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I have no trouble cashing out at all... None of my mining is to HODL...

I mine what I want to then send it to cryptopia and convert it to ether... From there straight to Coinbase and into my PayPal account... It's very easy.
 
cashing out is stupid easy. i just trade it to paypal through this fourm :p i have also met with somone local and got a stack of cash from it.
 
collegeboy69us said:
While I don't get into politics or give a rats ass what either side says or does, I do have to say that did make me laugh. Mostly what I thank is myself for my very early positions in XRP and XVG, those have been my big money makers :)
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I had to quit XVG since the community is so darn toxic and immature
 
Warren would be the world's worst day trader. All he does is hold.

Even when looking only at stocks, it rules out huge swaths of legitimate use cases.

It's kind of like trying to sell a timeshare to some guy who speaks his own language deep in the Panamanian jungle.
 
"Bitcoin and crypto-currencies will fail soon," said the increasingly nervous man for the 5th time.
 
oROEchimaru said:
I had to quit XVG since the community is so darn toxic and immature
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I noticed something very similar, I'm pretty resistant to all the crap on the reddit page. It's calmed down quite a bit since Wraith has fully released now. Right around new years everyone was losing their minds that night and for about a week afterwards. lately it's nothing but kids asking the same question over and over why they aren't lambo rich after investing $50 one month ago.

I was mining the shit when it was sub half a cent just because it seemed interesting and a nice ground level opportunity. I have no problem holding onto it and keeping an eye on it from time to time. For me it's a medium term hold coin, I'm thinking (and hoping) we see some crazy good action in the whole crypto word in 2018. When I got into XVG I initially had it pegged to only get maybe a 5X profit off it, very real chance I could see 50X instead :)
 
hlfbkd420 said:
I have no trouble cashing out at all... None of my mining is to HODL...

I mine what I want to then send it to cryptopia and convert it to ether... From there straight to Coinbase and into my PayPal account... It's very easy.
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Five steps to cash doesn't sound all that liquid but at least it sounds less aggravating than all the recent articles make it out to be.
 
Todd Walter said:
Five steps to cash doesn't sound all that liquid but at least it sounds less aggravating than all the recent articles make it out to be.
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It really isn't bad... I mainly mine Ether on my one box and another coin on my work box. It's the other coins that require a little bit of work.

One thing that is a PITA to people starting out now is that a lot of the exchanges aren't allowing new users. Or they require verification hoops with ID's, etc... I don't want to provide driver's license information to an exchange so I use Binance and Cryptopia.
 
hlfbkd420 said:
It really isn't bad... I mainly mine Ether on my one box and another coin on my work box. It's the other coins that require a little bit of work.
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Do you mean that you are mining on a work computer or your computer at home you do a lot of work on?
 
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