Buy Cryptocurrency, and you are Speculating and not InvestingMay 7, 2019
Charlie Munger stated, “I’ve been invited during this gathering to go to a happy hour put on by the Bitcoin people. And I tried to figure out what the Bitcoin people do in their happy hour, and I finally figured it out: They celebrate the life and work of Judas Iscariot.”
For those who do not know Judas, he was the apostle who betrays Jesus Christ for 30 pieces of Silver.
The comment of Munger indicates about how several traditional and well-established financial institutions view cryptocurrencies as an “existential threat to traditional banks.”
Munger also compared Bitcoin to “Turds” as that which is being traded by people with dementia.
“I like Cryptocurrency even less than Warren does. To me, it’s just dementia. [And a Bitcoin trading desk is] like somebody else is trading turds and you’re being left out.”
Buffet expressed his Bitcoin hatred by stating it is “mathematically dumb.” He called it reckless gambling.
Earlier Warren Buffet clarified stating it is a “sham asset” which does not deliver any returns.
Buffet is very sure that it is going to be a bad ending for those who invest in cryptocurrencies. He feels sorry for those who invest in crypto and for those who have got connected to the crypto shell game.
“You aren’t investing when you [buy Cryptocurrency]. You’re speculating. If you wanna gamble, somebody else will come along and pay more money tomorrow. That’s one kind of game. But that is not investing.”
“If you buy Bitcoin, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
Howard Marks called Bitcoin as a “Greater Fool Theory.” Marks clarified this stating that people buy Bitcoin because they want to make a big profit by selling their holdings to a “greater fool.”
Regardless of what anyone has to say or claim more than 1600 alternative cryptocurrencies follow Bitcoin. They rise and fall with Bitcoin.
From a community-oriented point of view, the cryptocurrency space will undergo main changes. There have been several cryptocurrency companies who have delivered on their promise, and they are now expecting to gain recognition for their efforts. Even if a lot of the projected projects lose their relevance, those who deliver their talk will gain relevance and acceptance in the cryptocurrency market.
Even if a cryptocurrency is not already famous or listed, it is worth looking into it.