re: Warren Buffett says he wouldn't pay $25 for all the bitcoin in the world

I get that approach, but I think peoples understanding of intrinsic value is flawed when it comes to Bitcoin, or really any network; and I’d just point to something like Metcalfe’s Law to indicate why I think that.

Any network has a value in proportion to the number of interconnections within it according to the law, although the constant of proportionality may not be a constant as the user base grows, but that’s aside the point. Commonly cited is the example of the fax machine, where a single fax machine is fairly useless but once you hook it up to other fax machines you gain utility and therefore the fax machines appear to be worth more as a network.

Yeah, users may enter and leave the network and therefore the network has to have qualities that attract people to it and keep them using it for the long term for this value to be be realized. With Bitcoin, the pitch is that it is the most secure network in existence and can facilitate transactions peer to peer without a trusted intermediary with a token with inherent scarcity. The pitch seems to be working over time.

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The dollar has the backing of all the resources in the USA and the best military in the world, so no it's not the same thing - at all.

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The dollar is backed by our faith in the dollar.

I just asked the nurse at the doctor’s office if I could pay in bitcoin. She said no.

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I’m interested in how this works. Who provides the earnings? How do they profit from giving away currency for someone to play their game? Does the game cost something? Are there in game purchases required? How is it different than using a fiat currency for the same thing?

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IIRC, most P2E games require a buy-in. You also have to purchase in-game assets. Since it's performance based, the more you spend, the better your assets, and the greater the chances for profit.

I'll be honest that I don't know much about P2E aside from investing in the tokens since I don't play the games myself. There are posters on the Money Board like downtime that can explain the ecosystems better.

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Warren Buffett is a little overrated and his take on Bitcoin blows arse. Sour grapes since he missed out on the money that has been made so far.

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That's enough internet for today.

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Can’t the same things be said about investing in gold? Especially those who don’t own physical gold? This is the silliest of the anti crypto rants.

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Not a rant. I literally don’t understand crypto nor do I invest in gold. However I understand that concept. My thing is gold is something physical I can touch, it’s a precious metal. What is a crypto? Literally what is it? And is it possible it could just drop off the map if it serves no purpose?

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I get your point... but the way to monetize the value of the fax network wasn't by buying or selling faxes (well unless you were Kinkos and sold faxing services), but rather, by buying and selling the companies that provided the components necessary for the network to work.

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Right. People keep talking about the value of the network. Yes - blockchain is pretty revolutionary. Bitcoin doesn’t produce the network - miners do. You don’t earn returns for validating transactions by owning Bitcoin. You earn those returns by mining Bitcoin.

I was typing a response to another post in this thread using a similar analogy earlier but never finished it - it’s kind of like the difference between buying oil vs. buying stock in oil companies.

If you buy a barrel of oil, it might go up in price. But it doesn’t compound. It doesn’t generate any returns beyond the change in its market value. When the price goes up, you still only own one barrel of oil. It’s a purely speculative investment.

If you buy stock in an oil company, you are buying a share of that company’s assets and revenue streams. It compounds over time. When the price of oil goes up, you keep your ownership stake and gain the added revenue - either in the form of dividends or as added assets for the company.

In both cases, you make money if the price of oil goes up. But only one of those options gives you truly compounding returns. Plenty of people make money on speculation by trading commodities, forex, etc… but that’s not how “value investors” operate.

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His game always looks a lot better when the market is down. When the market is high flying like it was up until recently, his strategy absolutely causes him to leave money on the table.

Long term it seems like it works well.

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“From 1965 through the end of 2021, Berkshire shares have generated a compound annual return of 20.1% against 10.5% for the S&P 500. “

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They can accept chicken feet as the exchange medium but it is still priced in USD and exchanged.

This is why BTC is not nor ever will be a true currency.

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with this logic there is only 1 currency in the entire world that exists, the USD. we know that is obviously not the case, so there must be something wrong with your logic.