Why Do We Need Bitcoin in the Modern Economy?

I thought this might be a better title than “Why are Millenials Investing in Turds?”

Why do we need Bitcoin in today’s economy and what does tomorrow’s economy look like?

What is Bitcoin and why do we need it?

Warren Buffet is known as the Oracle of Ohama. He is one of the Godfathers of stock investing known around the globe.

At a packed conference of shareholders, 87 year old Warren Buffet took to the stage to talk about digital assets.

“Cryptocurrencies will come to bad endings,” said Buffett, 87. He then turned to his long standing business partner, Charlie Munger.

“I like cryptocurrencies a lot less than you do,” replied Munger, 94. “To me, it’s just dementia. It’s like somebody else is trading turds and you decide you can’t be left out.”

charlie-munger-quote

 

In the investment world, Warren is a hero, who knows value investing inside out. His company, Berkeshire Hathaway, has managed to beat the S&P 500, an index of the top 500 companies in the USA, over three decades and it owns over $700 billion of assets.

So, you can’t just discredit comments from these savvy heavyweights.

In the last 10 years, Berkeshire has struggled to keep pace with the S&P500.

The main reason it has been hard for Berkeshire Hathaway to beat the S&P500 over the last decade is that it is now so big, it practically is the S&P500.

However, as Bob Dylan says, “times are a changing”.

The S&P500 has been beaten comfortably by tech stocks over the last 10 years and Warren missed out on many of them, notably Amazon.

A revolution is coming…

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