Posted on 02/24/2020 7:42:19 AM PST by C19fan
Berkshire Hathaway CEO and Chairman Warren Buffett on Monday reaffirmed his aversion to cryptocurrencies.
“Cryptocurrencies basically have no value and they don’t produce anything,” he told CNBC’s Becky Quick in a Squawk Box interview. “In terms of value: Zero.”
“I don’t have any cryptocurrency and I never will,” he added. Buffett joined CNBC to discuss the markets just days after he released his annual shareholder letter.
(Excerpt) Read more at cnbc.com ...
It has value if somebody’s willing to give you something of value (a bicycle for example) in exchange for it.
One could argue that it has as much value as the US Dollar. They are only worth what someone is willing to pay you for them.
Not a fan of Buffett. Less of a fan of this make believe money.
It has no value but I wish I invented it.
“Cryptocurrencies basically have no value and they don’t produce anything...”
One could say the same thing about unbacked paper currencies.
The dollar has value because the US government has policies in place that require you to need/use it. 1) You need US dollars to settle tax liabilities, and 2) no legal US business can refuse to take dollars due to Legal Tender laws.
I know what he means, I tried to pay for my QT coffee this morning with a Jackson and the cashier wouldn’t take it....oh wait....that never happened....
Cryptocurrency is a bunco scheme, parlayed up by combining it with the classic Ponzi scheme, and in the end, absorbing huge amounts of real cash from the gullible and those of only low information. The first to get out will have a huge pile of real negotiable currency, the late-comers and the sheep who followed the crowd will get fleeced once more.
But I suppose, in the minds of some, cryptocurrence is at least as “real” as Federal Reserve reserves, which are created and dissolved at virtually the keystroke of a computer.
Cryptocurrency is like a gun that requires a battery. Fun on the range when it’s working but do you want your life to depend on it when the chips are down?
Ah, yes. But if someone pays you with real dollars, you must first values those real dollars with fake dollars.
ML/NJ
I mean, he kinda doesn’t HAVE to get any.
Magic beans, of any sort, only have value if people believe they have value. The US Dollar is backed by the full faith and credit of nuclear weapons, cryptocurrency, not as much.
Currencies have the value people are willing to ascribe to them. Be it salt, seashells, dollars or bitcoin.
Running some software on your computer creates bitcoins backed by the full faith and credit of Bill Gates.
That makes perfect sense. /s
The power has gone out due to rolling blackouts. You have a chicken, and I have a difficult to factor integer sitting on a server in Zurich. Who has more?
Yeah sure Warren. If someone offered him a billion in bitcoin, he would immediately accept it and cash it in.
Indeed. Most modern currencies are nothing more than a socioeconomic means to easily convert & exchange value; they have no inherent value of their own. Fiat currencies work because the gov’t demands payment in that currency for taxes imposed on productivity; cryptocurrencies work because not everybody wants to use a physical/fiat currency.
No. The dollar has value because people are willing to take it in exchange for good and services. Spend some time in Latin America, you can use US dollars pretty much everywhere there. None of them are effected by US tax laws, but they take dollars, because they know they can use dollars. People give money power.
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