Warren Buffett is seen as the most successful investor in the world. About Bitcoin, he thinks that crypto assets are bad. But, there are a number of reasons why Warren Buffett is wrong about Bitcoin. Antoni Trenchev, Manager of Nexo gave a reason why Buffett was wrong.
1. Bitcoin is Gambling
Gambling has existed in human civilization for thousands of years and has been a driving force for human speculation. Stocks (one of Buffett wealth assets-Red) can also be called gambling tools, especially when the dot-com bubble (the early development of the Internet in public-Red), where millions of citizens of the United States suffered heavy losses and lost their savings. In addition, illegal gambling in the sports sector is valued at US $ 250 billion per year. That figure is greater than the current market capitalization of all crypto assets. It shows, if crypto is seen as gambling, it certainly is still inferior compared to other sectors.
2. Fraud Related to Bitcoin.
The US dollar is still the main medium of exchange for criminals today throughout the world. The evil person will continue to commit acts of evil regardless of the medium. Efforts to prevent crime through legislation and law enforcement must be implemented. Bitcoin does not provide an anonymous method for moving money, because many companies and government agencies are able to track complicated transactions when involved in a crime.
3. Bitcoin is not an investment
Bitcoin is a form of money that is not susceptible to inflation, which is rare after the removal of the gold standard against dollars. Bitcoin's limited supply of 21 million units is actually against the central bank which continues to print money and endanger the world financial system, because inflation continues to rise. "Bitcoin which is" censorship resistant "money, which does not require anyone's permission to use is an extraordinary innovation. In addition, the crypto assets are also a means of storing values comparable to gold, so it should be valued by Buffett, Trenchev said.
4. Pump and Dump Scheme
Bitcoin is a new form of money, which is currently still volatile in value. Nevertheless, the volatility is easing and will continue towards a stable value. Bitcoin has the utility to send large amounts of money at a very small cost and a very fast time compared to SWIFT (sending money across countries takes up to 3 working days, while Bitcoin is at most 60 minutes-Red). These uses show that Bitcoin is not just a speculation tool, but rather something that has benefits for many people.
5. The World Does Not Need Bitcoin, But Blockchain
Blockchain technology will not be as big as it is now without Bitcoin. According to Trenchev, this opinion shows Buffett's lack of insight into crypto assets and technology. Therefore, the root blockchain technology known to the world today comes from Bitcoin.
Trenchev said Buffett had a subjective perspective on Bitcoin. On the other hand, it is Buffett's constant inquiring and knowledge thirst that makes him one of the most successful and richest investors today.
That is very unfortunate, because Berkshire Hathaway is a company that can take advantage of the blockchain, by way of how to share ownership.
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