What To Make of Warren Buffett’s Flip Flop Stance on Bitcoin

Warren Buffett has been a constant critic on bitcoin for more than a decade. However, he's beginning to change his tone as Bitcoin is already playing a big role to serve the world’s unbanked population.
Warren Buffet's Statement on Bitcoin

Warren Buffett’s Statement on Bitcoin Cryptocurrency. Shutterstock Images

Warren Buffett needs no introduction. He is an investment guru and easily one of the most respected voices in the world when it comes to the money and capital market. Since the emergence of Bitcoin, he’s always had something not too pleasant to say about it.

In an interview with CNBC’s Becky Quick, Buffett said that Bitcoin is ‘probably rat poison squared’.

Growth of Bitcoin

Bitcoin Money Supply Growth Statistics. En.bitcoin.it Images

This statement didn’t go down well with people who see Bitcoin and other cryptocurrencies as the currency of the future that puts power into the hands of the people. Since that time, Bitcoin has been growing steadily in value, proofing naysayers wrong and clear all doubts. That is not to say there are no downtimes.


What Factors Contributed To the Growth of Bitcoin

Since launch in 2009, Bitcoin has been able to find a place in the hearts of people, who continue to trust it and ensure its growth. One of the reasons for this trust is that it came few months after the 2008 global recession that leads to millions of people losing their money and jobs, and big financial houses like Lehmann brothers folding up.

At the end of the recession, the world needed a fresh breath in how transactions are made and in the rebuilding of the economy. The invention of Bitcoin, as an alternative to fiat money, couldn’t have come at a better time. There are certain factors that propelled the growth of Bitcoin, of which Warren Buffett may have overlooked, in his assessments.

Benefits of Bitcoin

Infographic on the benefits of Bitcoin. Steemit Images

People are getting tired of the way the elite are running things the way they like. They needed a form of currency that is not controlled by the government and doesn’t have to be limited extensively by laws. Bitcoin provided that feature and people responded as the interest in it grows.

Unlike fiat money, Bitcoin puts the power in the hands of the people, and not a few people who sit at the top of corporate and government establishments, controlling everything. A decentralized system gives everyone the power to make exchanges and be whatever they want to be without worrying about official interference.

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With Bitcoin, there are no barriers whatsoever. People have the power to make a transaction in different parts of the world at an instance and with little fees, which makes international trade faster and more efficient. With all of these, it can be difficult for anyone not to accept the potential of a currency that will make international trade easier and less complicated.

However, Warren Buffett, speaking from the angle of an investor who has been on top of his career for decades, knows what it takes. His statements are seen as blasphemous but it’s important to understand the angle from which he’s speaking before judging him. As one of the most brilliant investors in the world, he has made over 82 Billion dollars over the years.

Therefore, his opinion about any ideas within the financial sector is taken with serious intent.


Warren Buffett Is Gradually Changing His Mind on Bitcoin

Over the last few years, Warren Buffett has been one of the most vocal and creative critics of anything about cryptocurrency. But recent comments by the Oracle of Omaha shows that he’s gradually making a U-turn.

When asked recently about his opinion on Bitcoin he said ‘it’s a currency without value because it doesn’t produce anything. It’s a delusion’. Critically examination of these words shows that Warren Buffett lacks the complete understanding of what Bitcoin or cryptocurrency is all about.

Perhaps he’s not wrong after all if you put into account the background he’s coming from; he is a billionaire who profited from the way things were run by a system. However, we shouldn’t ignore the fact that he’s beginning to agree with certain accept of Bitcoin and no totally bushing it aside as he used to.


What Warren Buffett Doesn’t Understand About Bitcoin

Warren Buffett doesn’t understand what the whole essence of bitcoin is. He couldn’t since it doesn’t function in a system that is subjected to control; something he is not familiar with. Truth is, bitcoin is not meant for certain people and Mr. Buffett is one of them.

He is part of a system that requires control and where a few people will determine the worth of what the saving of billions of other people will be. Bitcoin has played a major role in the financial systems around the world providing an alternative means of exchange for countries facing serious financial and economic crises.

Venezuelan Currency turned into Novelty Items

Venezuelan Currency turned into Novelty Items. Reddit Images

A good example is the Venezuelan Bolivar, which has currently become a currency so worthless people won’t even pick it up on the streets. Holding Bolivar as a store of value has become suicide hence, the people of Venezuela have an alternative currency, with global acceptance, of which they can store up their wealth. Also, people are donating USD in Bitcoin and other crypto to help thousands of people survive, since it can’t be stopped.

To find out insider news, before-the-public, I advise you to bookmark www.blockchainwhispers.com

In Australia, Bitcoin is considered legal just like every other currency. Right now, the prospects are growing and there are more opportunities to abound in the implementations. Finland hasn’t made Bitcoin legal yet, but it’s treated as a commodity, while in Belgium, Bitcoin has been exempted from the value added tax.

In the United States, where Mr. Warren comes from, Bitcoin has been debated in the Supreme Court and along with other cryptocurrencies, are regulated as a security under the laws of the United States of America. Such regulations will make it easier for authorities to monitor activities and make it more stable so people don’t just lose their money anyhow. Also, regulations will increase usage, trust, and acceptance, which will increase the popularity and acceptance with a wider global audience.

Read Next: Bitcoin Price Predictions for 2019 & the Future of Bitcoins

Conclusion

Bitcoin is the future of financial transactions because of the many benefits it has over fiat money. In a short while, as more people begin to adopt it, they will see the essence and importance of using it. Top investors like Warren Buffett will be able to find the perfect angle where they can come in and participate in the financial revolution that is sure to change the world.

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Disclaimer

The writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.

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Written by Reviewed by Coin Review Team
Published: Apr 3, 2019
Last Updated: Apr 9, 2019

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