It’s likely you’re reading this article and feeling a bit concerned about the fact that Warren Buffett and Charlie Munger recently slammed Bitcoin. These are two of the richest investors in the world combined age of 189 have never been big fans of Bitcoin.
Chart where btc returned 1,620% returns vs S&P 500 72% return over the last 5 years.
Well let me tell you, this is actually good news so let’s start by unpacking a couple of the latest statements that Warren and Charlie have made about Bitcoin. here’s Warren bold statement, “if told me you’d give me all the Bitcoin in the world and he offered it to me for $25 I wouldn’t take it because what would I do with it?”
The flaw in Warren Buffett’s reasoning here is if one person owned the entire world supply of any given asset, that would very much suggest that that particular asset is worthless. I do think that someone of Buffetts pedigree in the realm of finance should have worked that out by this point. Meanwhile his right hand man, Charlie munger said “I avoid things that are stupid and evil and make me look bad in comparison with somebody else and Bitcoin does all three factors”.
Probably not a good idea to compare the amount of fraud, embezzling, and overall evil that happens with the dollar. In fact there have been multiple studies showing that the US dollar has far more illicit activity than bitcoin has. An easy Google search provides many research studies that have been documented around the subject.
Fact is both Warren and Charlie have been saying bad things about Bitcoin for years now. Their comments haven’t made much difference. Bitcoin is still with us, it’s still getting stronger by the day and nothing that these two can say is really going to make any difference. All respect given to these two men for what they’ve accomplished, but they are weighing in on a subject they clearly don’t understand.
Buffett and Munger have made their money under the current financial system which as we’re seeing is no longer fit for purpose and is even starting to crumble. Bitcoin is an asset for the 21st century and it’s quite clear that neither Warren nor Charlie really understand for it or care for it and that’s absolutely fine because they’ve made more money than they could ever spend. As for the rest of us, well there’s hardly enough Bitcoin to go around as it is so if Warren and Charlie want to sit this one out that’s absolutely fine with me.
Fidelity Investments is going to allow US workers to save for retirement using Bitcoin this will be done through their 401K retirement savings plans that are ministered by employers on behalf of their workers fidelity is going to let companies invest up to 20% of their work savings in the coin last year fidelity handled over $4.2 trillion in assets under management.
Even our current economic situation with the stock market bitcoin is also seeing a downward trend which only signals to me it is time to buy more bitcoin. The fact of the matter is that bitcoin and cryptocurrency as part of our economic future. Gained far more in returns from cryptocurrency than I have from traditional investing. In fact I have turned an Initial investment I have $16,000 into a six figure portfolio because of how well cryptocurrency has performed.
Needless to say I am extremely bullish on the outlook of bitcoin and its future. I cannot believe that Warren and monger would goes as far as they did to say that bitcoin has no future.