Why We Shouldn't Listen To Warren Buffett

Authored by Andrea Bianconi via CoinTelegraph.com,

There has been a time when a saying was popular on Wall Street: “when Warren Buffett speaks, you listen.” Now Wall Street is better not to listen, if they do not want to become history faster than Kodak or Blockbuster.

The media are going mad reporting the latest senseless rants from Warren BuffettMunger and Bill Gates, just to name the last few. The usual barrage of senseless observations, wrong assumptions, popular, but wrong and ignorant distinctions between "the technology behind Bitcoin" - which is good and everyone on the Street loves it - and the rest which is obviously very bad or just plain insults to the whole crypto community - as if instead Wall Street is populated only by honourable gentlemen and philanthropists.

Shall the crypto community start trading insults with them? Shall we respond?

image courtesy of CoinTelegraph

No we shall not. For they are slowly becoming the past at an accelerating pace and they do not understand it. Besides, they know nothing about Bitcoin. It is like asking a rugby player to dance the ballet's classic "pas des deux". It is pretty unlikely that the player will know how to dance the ballet.

It is worth repeating again and again what Bitcoin is (with capital "B" the protocol), what bitcoin is (with "b" the money), that Bitcoin was the first ever Blockchain, that it is today the largest, open, peer to peer system of payment without intermediaries and without central point of failure, that it incorporates "a planetary scale, self evident, thermodynamically guaranteed system of trust and immutability", that it is tamper and censorship resistant, that it is resistant to geopolitical manipulation, that lives by consensus and has the features of money and that all this extraordinary complexity put together will change the world we live in and will be the backbone of this coming digital or 4th industrial revolution? No, these are words wasted on them, because they represent the establishment and they are either too much ingrained in the current system to be able to see something different coming or they have too much vested interest in it to be able to acknowledge it.

They prosper in a system which is based on custody, control, intermediary chains, oversight, cronyism, centralized trust and manipulation. Bitcoin has none. Bitcoin is an alien to them.

The last time that Warren Buffett made very serious money has been with the financial crisis in 2007-2008. When millions of people lost their lifesavings and the hope for a decent future life he made more than $10 bln. By its own admission, this is not because he is a great investor:

"If I didn't think the government was going to act, I would not be doing anything this week. I am, to some extent, betting on the fact that the government will do the rational thing here and act promptly."

Buffett told the above to CNBC after investing $5 bln in Goldman Sachs. Sure enough the US government did just that.

So you see, you do not have to be an "oracle" to profit from stocks of companies which you know will be saved with public money when you are pals with the President, the Treasury Secretary and the Fed Chair and they can guarantee that to you. There are few in Wall Street who can represent more egregiously today's crony capitalism than Warren Buffett.

B(b)itcoin stands tall as a symbol against all that. Obviously he does not like it.

Of his despisal we must be proud.

WE, the Crypto community, see a different world coming, WE hope to move away from this crony capitalism to a decentralized, open, trusted and democratized capitalism based on more honest money (just like Bitcoin). 

So the message here is not for the Buffetts of this world, it is for the crypto community of young and bright technologists and entrepreneurs. It is an appeal to stop bickering about which technology is better than the other. Do not waste your time in internal battles that only delay the progress. This is not a religion or a dogma. Yours is a fundamental contribution towards a better future, towards a better world.

Put your heads down and whatever you do keep doing it together to improve the Bitcoin´s fundamental pillars of: (i) real decentralization and openness (ii) an inbuilt system of trust and immutability which must be highly resilient to coercion, censorship, geopolitical manipulation and tamper and (iii) cryptographic encryption. Whatever will be the solutions adopted to improve on that, then the result will bring progress to humanity as a whole.

The Buffetts of this world will soon be a thing of the past. For it is a question of when, not if, the NYSE and the NASDAQ Blue Chips will start tokenizing their shares on crypto exchanges, when there will be no more IPOs but only STOs, when VC firms will bring their illiquid portfolios to crypto exchanges to be tokenized and when - in only a couple of years from now - the tokenization will be a trillion dollar industry, then also Berkshire Hathaway will do what Goldman Sachs is doing today, forming a crypto desk and buying tokens. 

The irony is, to be able to do that, they will have to buy bitcoin. 

Then, suddenly, it will all make sense to old Buffett as well.


DarthVaderMentor Wed, 05/09/2018 - 09:15 Permalink

I don't believe in Warren Buffet, but I'm also not a blind believer in cryptocurrencies.

It's OK to listen, I just don't act or react to his advice or rush and buy cryptocurrencies.

FireBrander DarthVaderMentor Wed, 05/09/2018 - 09:20 Permalink

They prosper in a system which is based on custody, control, intermediary chains, oversight, cronyism, centralized trust and manipulation. Bitcoin has none. Bitcoin is an alien to them.


Are you, like, 22 years old or just an old fool that never learns?

Everything "new" has what I call it's "Wild West" phase which is free of everything you listed in the quote above. It remains that way until it "goes too far" in stripping power from politicians and wealth from the Money Changers...and at that point, it dies the slow/quick death of Government control/regulation.

1. It's not "different this time".
2. A fool, of any age, and his money are soon parted.
3. The Government/Money-changers killed the Son of God to keep hold of their power/wealth...crypto will go down far easier than God's Child.

PS> Trump Tweets "Crypto's are undermining the faith in global currencies. Our Federal Reserve system, in cooperation with all of it's foreign partners, including China, will take action soon against these unregulated Crypto's that are ruining the value of Federal Notes and fueling illegal activity, such as money laundering and drug dealing, on a Global scale".

What happens then?

In reply to by DarthVaderMentor

tmosley StackShinyStuff Wed, 05/09/2018 - 09:28 Permalink

The thing about Warren Buffet is that after some early successes, he largely garnered his middle and later success from his political pull. Buying up railroads, then blocking pipelines so producers were forced to use his rail lines (and blow up towns in the process) is the example that springs immediately to mind.

I would bet that the reason it never paid to go against Warren was that whatever he said in public was backed by massive graft programs in the background.

With Trump, that era seems to be coming to a close.

In reply to by StackShinyStuff

JuliaS tmosley Wed, 05/09/2018 - 14:21 Permalink

Tmosley, Buffet is a critical mass investor. His capital is his reputation amongst old school speculators in his age group. They're the source of his income and not the bets he places. He's a representative of the old paradigm that states: "Whoever owns the most by the time he dies is the winner". He's rich as long as there are enough boomers around hoping to mimic his success, denying themselves present comforts, while hoping for the future they won't live to see. Generations that come after, have no interest in following such path. Internet with its zero opportunity cost rewards high risk short term gambling.  Buffet owns so much, he's nearly oblivious to rules and regulations. He's not wise or lucky. Just rich, to the point where the money in his pocket attracts more money through the sheer force of gravitational pull.

In reply to by tmosley

Nunyadambizness OH10DESERTER Wed, 05/09/2018 - 11:50 Permalink

Gold and silver are still MUCH safer bets.  I don't own bitcoin but am a fan, but as was stated above there will be 1,000,000 different "coins" that people come up with, and trying to figure out what the value is of one versus another will be completely futile.  Right now it's the Wild Wild West with crypto's, but at some point there will have to be some sort of regulation/control put on them or they will never become the go-to for money.  When I can come up with "Nunyacoin", and you can come up with "Desertercoin", and everyone else can come up with their own, the value drops to zero.

In reply to by OH10DESERTER

FireBrander TheytookERjobs Wed, 05/09/2018 - 09:39 Permalink

Is the Government powerless against Crypto's?

I think not..so why let it build in undermining the money they print...why allow the loss of control?

How simple is this:

1. It is illegal to own Crypto.
2. It is illegal to transact in Crypto.
3. How are you going to convert from digital to dollars?
4. How are you going to digitally spend the money if no business is willing to go to jail to accept it?

If you think FED Bankers are just going to lay down and be run over by Crypto's, you're in for a big surprise.

In reply to by TheytookERjobs

ZazzOne Wed, 05/09/2018 - 09:16 Permalink

Buffett can't get any govt subsidies from Bitcoin, so it's useless to him, and actually poses a threat to his banking investments!!!

Mr. Pain Wed, 05/09/2018 - 09:21 Permalink

Try to find value in his Clayton Homes. So many people claim its a ripoff you just got to wonder if Warren is that nice grandpa you never had...........

balz Wed, 05/09/2018 - 09:24 Permalink

I remember the "silver community". That ended well.

A "crypto community" is just a bunch of losers who trade crypto-bits and hope to make money from a greater fool.

Catullus Wed, 05/09/2018 - 09:26 Permalink

I have these assets. They’re in the cloud. And I’m calling them assets because when I log-in to this thing, a computer tells me it worth this many numbers today. If I can’t log-in or other people can’t, I have no idea how many I have left or how much it’s worth. 

But sure as shit if I sell these assets, I’m expected to pay taxes on them