Why Warren Buffett is Against Bitcoin
I intentionally haven’t written much about bitcoin or crypto-currencies. Why? Because, it is a loud space. There are so many opinions about it, many from under-qualified investors, basement day traders, and people selling bitcoin related products. I block these people out because my plan is wealth, not one specific tool that could build wealth. But when a guy like Warren Buffett speaks, I listen.
Warren Buffett has bounced back and forth as the wealthiest man in the world. He currently has a net worth of roughly $82.8 billion dollars. He has substantial ownership in some of the largest companies in the country and has been doing this for decades. He says he wouldn’t invest in bitcoin.
Why? Because Warren invests for income. Bitcoin produces no income and therefore has no intrinsic value. Warren values income so much that he invests in only income producing assets, and in his stock he does not pay income to his shareholders. This allows him to retain the thing he cares about most in his investments. Warren goes so far to say that Bitcoin isn’t actually even an investment. It’s a speculation that you can buy at one price and sell to another guy at a higher price than you bought. And the only reason he would buy is that he believes the same thing. At some point, the guy on the buying side won’t believe he should pay more and whoever bought last will end up losing money. It’s like hot potato.
Is he right? Yes! The guy is a billionaire! If you have $1,000,000 net worth the get is 80,000 times more right than you. Just look at his net worth. So what should crypto currency investors be doing? Look for companies that have a long track record of income and expansion that you’d want to own for the next 20 years anyways, and find out which ones are implementing cryptocurrency. Never leave known income for hoped for income. Bitcoin is hoped for income. A stable giant, income producing machine that plans to utilize cryptocurrency will do well despite crypto currency.
My opinion is that crypto currency is here to stay. It’s not going anywhere. I don’t know that bitcoin is here to stay though. And quite frankly I’ve got more important things to do with my time and money than to speculate about it. Ultimately, whether it is bitcoin, real estate, stocks, or bonds they are all just tools. A mansion won’t get built because you had a cool hammer. A mansion will get built because you had a blueprint, people to do the work, and consistent production and results. Wealth is no different. You need a blueprint, a team, and consistent production & results. I teach my clients how to build a blueprint, build their wealth team (board of directors), and consistently make & save more money so that they can reap the benefits of smart investing. Click here if you’d like to build your blueprint today!
Own Your Potential,
Grant Cardone Certified Coach
Jerry Fetta helps his clients make money, keep it, and multiply it.
He believes everyone should own their potential. He believes you were not created to spend 40+ hours per week serving the 40-year-to-life sentence trading your precious time for money just to live in mediocrity.
However, the truth is that time and money must be exchanged. It just doesn’t need to be you making the exchange.
Jerry helps his clients create wealth that exchanges time and money on their behalf.
His clients see a 30% increase in income, a guaranteed increase in savings rate, and 8-12% fixed annual returns on their assets in the 1st 90 days of working with him.
To get started, go to www.WealthDynamX.com/potential