Buffett's view on digital cryptocurrency

The former richest man in the United States and the world, Warren Buffett, recently expressed his views on cryptocurrency at a general meeting of shareholders

"not everything is called investment. You pay attention to the investment itself and the value it proces, such as a house, an enterprise or even a farm. These are called investments because they generate added value. But digital currency and bitcoin are not. They don't proce any additional things. They are also virtual. Rather than investing in them, you hope that the next order will come soon. It's speculation, that's gambling. "

" I started buying stocks at the age of 11, stock market crash, technology bubble, bear market and financial crisis, all of which I have experienced. I don't know when and why the bad results will happen, but what I know is that I won't invest in bitcoin. In the future, bitcoin may become a situation that all investors do not want to see. "

Warren Buffett really has his own unique view. When American blue chip companies and IBM began to accept blockchain and develop it, multi gold Warren Buffett still didn't buy this encryption technology. Of course, he has been singing down bitcoin more than once. On many public occasions, Buffett has been expressing his idea of not looking at bitcoin

in fact, considering the short position explosion of 460000 bitcoin by a well-known trading platform before, what Buffett said is not unreasonable

the biggest slogan of bitcoin is nothing more than" decentralization ", but in the end, it still has to rely on the [centralized] currency exchange. As a result, it has been teased and become leeks to be cut

I think blockchain may change the world, but it is definitely not used in cryptocurrency such as bitcoin

The answer is yes. < / EM >

Warren Buffett does not look at the valuation, only looks at the quarterly financial statements, and makes analysis and investment according to the quarterly financial statements. Only if the investment cycle is long enough can quarterly analysis work

and digital currency is more difficult to understand than the Internet of things. Digital currency has no concept of cash flow and quarterly financial statements. It can only carry out basic valuation according to the comparison of similar projects, and there is no clear valuation model

based on financial statements, Warren Buffett certainly can't accept such a minimalist financial report, an incomprehensible and imprecise economic model, which may be explained only by a fraud in his eyes. In Buffett's eyes, digital currency has no intrinsic value support

Buffett's behoove is a matter of course, because the emergence of bitcoin is a bubble or a new monetary revolution. P>

last November, Buffett published in the Journal Forbes, calling bitcoin "a hundred percent bubble": "you can't determine the price of bitcoin because it can't create value... From this perspective, it is a hundred percent bubble." It doesn't make sense at all. This thing is outside the supervision and control. Neither the US Federal Reserve nor other central banks can monitor it. I don't believe it at all. I think it's going to collapse sooner or later. " In Buffett's Berkshire Hathaway company, his partner Charlie Munger has similar ideas. At the end of November last year, Munger said at University of Michigan's Ross School of business: bitcoin is a bad idea. It's a crazy bubble. It's also a bad idea! p> < / blockquote >

in short, the price of bitcoin is rising, which makes many people hot. But in the long run, there is no doubt that bitcoin will collapse