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The proposition that Buffett doesn't understand tech is humorous.

In fact, BRK owns 65 companies outright that depend heavily on data systems and the latest technology. BRK is always spending to upgrade systems.

Companies like Geico Insurance, Duracell, Dairy Queen, Berkshire Diamonds, General Re......require a lot of very high level technology.

I think Buffett enjoys perpetuating the myth. It suits his sweet old grandpa image. I don't even own a computer he says.......yea, okay.

 

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The proposition that Buffett doesn't understand tech is humorous.

In fact, BRK owns 65 companies outright that depend heavily on data systems and the latest technology. BRK is always spending to upgrade systems.

Companies like Geico Insurance, Duracell, Dairy Queen, Berkshire Diamonds, General Re.......

I think Buffett enjoys perpetuating the myth. It suits his sweet old grandpa image.

They're not tech companies though, they just use technology.
 

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I think people should meet Mr. Goxx. He has outperformed the S&P 500 and Buffet through trading cryptocurrencies since June.

Should I mention that he's a hamster?

 

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I still can't understand crypto currencies like Bitcoin. I am sure a lot of money has been made on them by demand causing the coin price to go up. But what is their actual worth.

It needs to be tied to something real. If I sell someone my house for Xthousand Bitcoins I want to be sure to be able to convert those Bitcoins into Ythousand C$, because that is the currency houses are normally sold in. The Bitcoins I get could change in value up or down like a yoyo while the sell-buys are being transacted.

We worry about owning stocks or ETFs that are US$ dominated. We even buy hedged funds instead. So why would we even think about Bitcoins? Just because in recent years some foolhardy people have driven the price up? How much would my US$1.00 2011 Bitcoin be worth today? Apparently $50,000. That is insane.
 

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It needs to be tied to something real. If I sell someone my house for Xthousand Bitcoins I want to be sure to be able to convert those Bitcoins into Ythousand C$, because that is the currency houses are normally sold in. The Bitcoins I get could change in value up or down like a yoyo while the sell-buys are being transacted.
What if I told you the $C needs to be tied to something real.. because it's not. What if I told you houses increase in value in line with the inflation of $C. Your unit of measurement is flawed because it is a unit that arbitrarily increases at a whim. Basically you don't understand what money is and bitcoin uncovers this ignorance

We worry about owning stocks or ETFs that are US$ dominated. We even buy hedged funds instead. So why would we even think about Bitcoins? Just because in recent years some foolhardy people have driven the price up? How much would my US$1.00 2011 Bitcoin be worth today? Apparently $50,000. That is insane.
I don't worry about owning $US investments. In fact I seek out investments in other currencies. I don't buy hedged funds. Those are for people who don't understand the world is much bigger than their local fiat. Every fiat currency in history has been subject to inflation. Look at Venezuela, Lebanon and Turkey. That is insane
 

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Discussion Starter · #547 ·
What if I told you the $C needs to be tied to something real.. because it's not.
The CAD is backed by tons of real stuff. The Canadian economy is behind it, and the ability of the government to raise tax revenue. That means that all collective wealth in the nation, including untapped natural resources (lumber, oil, minerals, metals) gives the CAD legitimacy and fundamental value.

I still can't understand crypto currencies like Bitcoin. I am sure a lot of money has been made on them by demand causing the coin price to go up.
There are tons of speculative things people make a lot of money on. There are people who've made fortunes trading various commodities and penny stocks too.
 

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From the draft legislature and discussions happening in the US it looks like-

5 x BTC ETFs to be approved in US in late October (Canada already has 3)
BTC to be regulated and treated as a commodity in the US
This seems pretty likely way to balance out the follow on attacks on crypto lending platforms

ETH to be treated as a commodity like BTC
This is already in the draft legislature which surprised me
Regulatory clarity would be huge for ETH but it will probably be held up by some 87 year old senator or the wicked witch Warren again

All lending platforms like Celsius, BlockFi, Nexo will be tied up in legislature for a long time and "centralized" cryptos will be investigated
Based on 100-year old laws and US precedents these are illegal and there is a lot of wild west and scams going on
I don't see the US writing new laws to fix this even though they should - need to protect banks and their profits

Either way the US is well aware they can't just ban BTC and DeFi like China now
 

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Canada has 3 BTC ETFs and the USA has 5 BTC ETFs pending approval in Oct

The others in Canada I believe are all ETH. Cathie Wood is using the Canadian ETFs
 

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The CAD is backed by tons of real stuff. The Canadian economy is behind it, and the ability of the government to raise tax revenue. That means that all collective wealth in the nation, including untapped natural resources (lumber, oil, minerals, metals) gives the CAD legitimacy and fundamental value.
Justin Trudeau said he doesn't think about monetary policy. If CAD is backed by untapped resources then why isn't Alberta filthy rich

BTC is backed by a mathematical monetary policy. It can't be confiscated when Canada's "monetary policy" of raining money fails

If CAD is backed by revenue then what makes the USD valuable when it is backed by a country in a debt crisis
 

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What if I told you the $C needs to be tied to something real.. because it's not. What if I told you houses increase in value in line with the inflation of $C. Your unit of measurement is flawed because it is a unit that arbitrarily increases at a whim. Basically you don't understand what money is and bitcoin uncovers this ignorance
With due respect m3S, your post displays either your own ignorance or perhaps just indicates the way you would like things to be. The buying power of the C$ does not change by 20% over 2 weeks as Bitcoin did recently (or 4900% over 10 years).

I can't think of a more speculative "investment" than buying Bitcoins or any other crypto currency. For your own sake, I hope you are not too heavily into it.
 

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Saw this on this website:

4. Are cryptocurrencies a good investment?
Cryptocurrencies may go up in value, but many investors see them as mere speculations, not real investments. The reason? Just like real currencies, cryptocurrencies generate no cash flow, so for you to profit, someone has to pay more for the currency than you did.
That’s what’s called “the greater fool” theory of investment. Contrast that to a well-managed business, which increases its value over time by growing the profitability and cash flow of the operation.
“For those who see cryptocurrencies such as bitcoin as the currency of the future, it should be noted that a currency needs stability.
Some notable voices in the investment community have advised would-be investors to steer clear of them. Of particular note, legendary investor Warren Buffett compared Bitcoin to paper checks: “It's a very effective way of transmitting money and you can do it anonymously and all that. A check is a way of transmitting money too. Are checks worth a whole lot of money? Just because they can transmit money?"
» Learn more: Is Bitcoin safe?
For those who see cryptocurrencies such as Bitcoin as the currency of the future, it should be noted that a currency needs stability so that merchants and consumers can determine what a fair price is for goods. Bitcoin and other cryptocurrencies have been anything but stable through much of their history. For example, while Bitcoin traded at close to $20,000 in December 2017, its value then dropped to as low as about $3,200 a year later. By December 2020, it was trading at record levels again.
This price volatility creates a conundrum. If bitcoins might be worth a lot more in the future, people are less likely to spend and circulate them today, making them less viable as a currency. Why spend a bitcoin when it could be worth three times the value next year?
Another tidbit from Investopedia on bubbles:
Although every bubble is different, one common element in most bubbles is the willingness of participants to suspend disbelief and to steadfastly ignore the increasing number of cautionary signs. Another is that the bigger the bubble, the greater the damage it inflicts when it bursts. And perhaps most important is that the five biggest historic bubbles, along with others along the way, hold valuable lessons that should be heeded by all investors.
 

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@agent99 ethereum has generated 8 figures in revenue this year in the form of transaction fees paid to the nodes to process the network. I'm earning revenue from the gamblers

Yes there should be a blow off top due to all the hype as there always is. There should also be a blow off top in real estate and many other markets imo

I've already taken out far more than I ever put in. I can see why it appears like a "greater fool" investment and in the past I would agree with you. However the same people missed out on amazon, google etc because they didn't understand the network effect and disruptive scale of new technology

The sad part is that CAD does change in value but you perceive 1 CAD as 1 CAD. In reality it declines in purchasing power every year.

I really need to stop wasting my time on here but it is an interesting phenomenon. It is so hard for people to understand even when they have the knowledge
 

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Cardano just started to announce partnerships with US companies for digital ID, loyalty programs, supply chain management, fraud protection, payments rails and gaming

If you still don't get it at this point I need to stop trying to help you. I truly hope your grandchildren buy some for themselves
 

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@agent99
The sad part is that CAD does change in value but you perceive 1 CAD as 1 CAD. In reality it declines in purchasing power every year.

I really need to stop wasting my time on here
It is sad that you would post that first sentence. You don't know me nor do you know what I perceive other than that I perceive buying cryptocurrency is a mugs game.

Second sentence is a good idea!
 

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Justin "forgive me if I don't think about monetary policy" Trudeau




How is everything a greater fool investment and yet the dollar is stable hah
 

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The sad part is that CAD does change in value but you perceive 1 CAD as 1 CAD. In reality it declines in purchasing power every year.

Yes......that is the whole point. If the currency becomes more valuable in the future, people would HODL it and the economy would suffer.
 

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You shouldn't stop wasting your time. I like this debate from both standpoint.

Yes......that is the whole point. If the currency becomes more valuable in the future, people would HODL it and the economy would suffer.
That's interesting. That's right, why would I buy a car for 1 Bitcoin this year when I could buy two cars for 1 Bitcoin if I wait one year?

Therefore Bitcoin has to stabilize. But when Bitcoin will try to stabilize, all the people who hold it as an investment instead of holding it as a currency will start selling their Bitcoin (because they aren't an investment anymore), which would make it crash hard.

So there's still a lot of volatility ahead of us...

But anyways it will be forced to stabilize at some point because obviously a financial asset cannot growth at that pace forever, otherwise Bitcoin would be valued $1Q in just a few years, which makes no sense.

Not?
 
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