Munger says Bitcoin is trash

Ya I was called a “FUD flinger” for saying these types of things. I will say I don’t understand the technology behind d crypto but can’t see anything taking over government controlled FIAT. They lose control of their economies if they don’t control the money. EUR is already too many countries/economies under one currency.

Honestly by the time everyone knows about a trade it’s mostly over. I can’t say the mania can’t go further certainly it could. A lot of people were right about tech companies with no earnings going to 0 but they shorted too early, underestimating the hype. The truth is even if bitcoin doubles, quadruples it’s not turning a thousand or 10k to millions like the masses that invested hope. The rags to riches millionaires already been minted from this trade, there’s not enough room left to turn the rest into millionaires.

Although BTC is fun to watch it’s volitale and those loaded up are over hopeful and positioned too big. It’s also loaded with investors waiting to bail at break even. Then there’s the whole Bear story of those that believe it’s worthless. I won’t be trading it but for entertainment purposes it’s certainly interesting to watch.

 

Around four hundred years ago in Holland, a nice multi-colored tulip was said to be hard to cultivate and possess special utilities. One such tulip was valued as much as a well appointed house.

Before long all was history.

 

Ask what Munger thinks of gold and you will get a similar answer. Yet it has had value for several thousand years. Same thing with Buffett. Take their opinion with a giant grain of salt. They are equity people that hate the idea of sitting on non-equity assets, regardless of their benefits

 

I am yet to find someone who thinks cryptos is a good thing that was disrespectful or even "someone who acts like they are in a cult"(they may be there, I just really didn't find one to this day). I only saw people that rationally defended they're own point of view, regardless of others agreeing with them or not, and don't go around calling people names(unless provoked) and making everything personal all the time.
On the other hand, the people that are against it, like many in this forum, just keep repeating the same name calling "cultists", "idiots"(as if this proved anything)...Keep opening threads, writing posts, one after the other in order to "prove' to themselves how right they are, wishing that something they (alledgedly) don't even believe in is worthless all the time. I mean, if you think it is worthless, why not just ignore it and let the people who think it is a good idea deal with it? Nobody is asking they're opinion anyway(even though I have no problem with people giving their opinions over anything, I'm just questioning the fact that these people get so affected by something they don't even believe in). And nobody is forcing them to use it either.
And the funny thing is that one uses the opinion of the other to "confirm" that he/she is "right"... But these are just opinions, nothing more.
Group thinking, nothing good can ever come out of it and this is what in fact really resembles a "religious behavior"...

 

Maxinger says Bitcoin is tradable.
During uptrend, just long it.
During downtrend, just short it.

Munger thinks it is a problem.
Maxinger thinks it is an opportunity.

 

I was going to politely ask to quote the post that shows the personal attack but decided it's not worth bothering. The name-calling has been from the naysayers, mostly, and like you said unless provoked but still remember it was rare.

 

Warren Buffet in Barron's interview Aug. 18, 2017 On why he doesn’t invest in gold: “You could take all the gold that’s ever been mined, and it would fill a cube 68 feet in each direction. For what that’s worth at current gold prices, you could buy all—not some—of the farmland in the U.S. Plus, you could buy 16 Exxon Mobils, plus have $1 trillion of walking-around money. Or you could have a big cube of metal. Which would you take? Which is going to produce more value?”

I think that you do Buffet a disservice. He didn't say that Gold is trash. He implied that equity investment are better investments. Hard to argue with than logic when you compare the returns of Gold (down 16%) vs SPY (up 73%) vs Buffet's Bershire Hathaway (up 96%) over the past 5 years:
http://goo.gl/KupuFp

 

He is wrong, he is assuming that the entire world is like him. That everybody lives in a developed market economy with a stable currency and that they have the risk tolerance to be 100% in equities all the time. Furthermore, that the 100% equity position happen to be in a country that doesnt completely fall apart. Ask how did a Greece or Venezuela investor trying to mimick Buffett did, vs one with 20% in gold. 5 year backtests against stable country stock markets are meaningless. Point is, gold is a tool for people with a limit to their risk tolerance to protect against tail risks.

Munger is the same, he says that people who hold gold are jerks. They are not considering that the vast majority of the people in the world are not in the same position as them. So dont listen to them when it comes to stores of value

 

I find that doing my own research on crypto and use logic to determine whether or not it has value is far better than blindly believe the big names like Buffet or Soros take on crypto.