Why Munger & Buffet hate Bitcoin!
601 sats \ 5 comments \ @Jonathan_Adly 16 Feb 2023 bitcoin
People think that they don't understand it, but I think they do. Berkshire Hathaway entire business model is buying cash-flow positive companies where the owners took on debt in the wrong time of the credit cycle. Their cash-flow can't service the debt, so they become distressed and "value". Berkshire Hathaway then swoops on with debt leveraged on their other assets and buy them.
A currency, like Bitcoin, where there are no credit cycles and debt is a lot harder to get is destructive to everything Berkshire Hathaway does.
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0 sats \ 0 replies \ @fred 17 Feb 2023
They wouldn't be here in the next decade to see the wonders Bitcoin did so they hate.
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0 sats \ 0 replies \ @cryptocoin 16 Feb 2023
I'm going to go with this simpler, easier to understand reason:
Charlie Munger asked about long-term valuations: "I don't worry about it too much, because I will be dead"
https://twitter.com/ForexLive/status/1625934092427489280 [Nitter]
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0 sats \ 0 replies \ @TNStacker 16 Feb 2023
Your point is on point. I studied Finance as an undergrad and the entire construct is based on cash flows (CF). Decisions are made on CF analysis.That and the cost of capital. When there are companies that derive growing CF from BTC, they will sit up and take notice.
Those old enough to remember may recall these guys shitting on the internet and tech companies. Back then Buffett would just say I dont understand it and I don't invest where I dont understand. He then became best pals with Bill Gates.As a result he now owns hella Apple, etc.
If they live, they will come around, late as usual.
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0 sats \ 0 replies \ @IHL 16 Feb 2023
What you say could be true. I think it is likely, however, that neither of them have ever owned bitcoin in cold storage and done a peer-to-peer transaction while validating everything with their own node.
I would posit that you can't come close to understanding why Bitcoin is valuable until you are comfortable doing this.
I think this is most likely true for almost all Bitcoin critics.
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0 sats \ 0 replies \ @TomK 16 Feb 2023
Provide real value to real people in the real world would be too much effort for these Fiat clowns. Riding the waves of printed currency is way easier than providing value
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