Why does Warren Buffett have a bitcoiner mindset?

Warren Buffett is considered one of the greatest investors of all time. His natural successfor over half a century on traditionalfinancial markets made it possible to make a huge fortune. According to the most current data, Buffett’s personal fortune is estimated at approximately $ 85 billion.

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As for such a young phenomenon asBitcoin and cryptocurrencies, the famous billionaire is fundamentally skeptical about them. Buffett has long earned a reputation as one of Bitcoin's biggest haters. However, if you study his key principles and approaches to investing more closely, you will understand that Buffett, in fact, has the mindset of a true Bitcoiner. This may be surprising at first, but just read today's story and you will immediately understand everything.

Warren Buffett Hates Bitcoin

The billionaire investor is known as a proponent of a value-based investing philosophy. He is an absolute admirer of the work of Benjamin Graham, one of the founders of this philosophy.&#171;Oracle of Omaha&#187;As Buffett is called in financial circles, he also long ago convinced everyone that he would never invest in areas that he did not understand.

True to his philosophy, Warren Buffett missedmany promising investment opportunities in the world of technology during the formation of GAFA in the late 1990s. His official stance on Bitcoin is entirely consistent with his philosophy. As he once stated:

&#171;Bitcoin is rat poison squared.&#187;

Obviously, such a vision would seem to be fundamentally contrary to the bitcoiner mentality. But! If you look at his four basic investment rules and apply them to Bitcoin, you will see thatWarren Buffett really treats money the same way bitcoins treat Bitcoin.

Rule # 1: Bitcoin is the King

Warren Buffett often reiterates that money is king in financial markets. Therefore, you must be flexible enough and use the opportunities available to you.

Bitcoiners are also convinced that Bitcoin is the king.

They see other cryptocurrencies as miserablecopies that have no future. Bitcoin is the only true cryptocurrency that you can buy and accumulate. Such a radical position is known as Bitcoin maximalism.

By the way, the dominance of Bitcoin on cryptocurrencyMarkets is located at around 70%. This is simply colossal, but it is fully explained by the fact that the general public often associates the world of cryptocurrencies with Bitcoin, the flagship.

New entrants always buy BTC first, which allows the Bitcoin market to be much more liquid than other cryptocurrency markets.

Bitcoin's hegemonic position is reinforced by the fact that in order to purchase most alternative cryptocurrencies - or the so-called altcoins - you first have to buy Bitcoin for fiat money.

Finally, in a fairer world of the future, which Bitcoin is bravely building block by block, owning bitcoins will be as important as owning cash today.

Rule # 2: Use caution when others are greedy

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When people ask Warren Buffett about the secret of winning stock market investments, he often answers like this:

Be careful when others are greedy, and be greedy when others are careful.

This is just the philosophy of bitcoiners. They are cautious when the Bitcoin market gets out of control, as it was at the end of 2017, for example.

On the other hand, during a long bearThroughout 2018, many impatient or unbelievers capitulated and sold off their coins. In turn, bitcoiners used this opportunity to accumulate even more coins.

Therefore, the behavior of Warren Buffett and bitcoiners is similar in terms of choosing the perfect moment to invest.

Rule # 3: Always Buy Bitcoins When They Are Underestimated

Warren Buffett's value-oriented investment philosophy is to always buy stocks of undervalued companies.

For investments to be winning, you must be able to recognize the potential of undervalued stocks.

This philosophy is also consistent with philosophy.Bitcoiners, which continue to accumulate more and more BTC, because they believe that now the main cryptocurrency is largely underestimated.

Bitcoiners are convinced that Bitcoin is a revolution that in the future will become an alternative to the current monetary system.

This scenario will lead to mass adoptionBitcoin and thus its increasing applicability. As demand increases, the price of Bitcoin will rise to levels we have never seen before. Some predict that the price of BTC will reach at least $100,000 by 2025, while others predict it will rise to $1 million by 2030.

Since bitcoiners expect such price levels, it is logical to assume that now the coin is underestimated. Thus, most likely, they will continue to buy bitcoins further.

Rule # 4: Buy and Store Bitcoins

If you want to make successful and profitableinvestment, then Warren Buffett advises betting on the long term. After you have chosen shares for yourself, they need to be redeemed and held as long as possible. Allegedly the only way to maximize profits.

Bitcoiners treat Bitcoin the same way Warren Buffett refers to stocks. They buy and store (go, if the crypto community is on slang) their BTC.

This explains why Bitcoiners are not particularlyworry about the fall in the price of Bitcoin from $20,000 at the end of 2017 to $3,000, a price that lasted almost all of 2018. Now the coin has slightly gained weight, but it is still far from its previous maximum.

Their Unwavering Confidence in Bitcoinencourages them to continue accumulating bitcoins. It is worth noting that patience is fully justified by the excellent result, especially if you trace the price trend of Bitcoin from its inception to the present day.

In conclusion

Warren Buffett is a fierce adversary of Bitcoin. This is common knowledge. The reason is simple: Bitcoin is a kind of technological revolution that Warren Buffett does not understand. He is used to not investing in areas that he does not understand. But perhaps his approach will change, or he will still understand the value embedded in Bitcoin.

Still, Buffett has the thinking of modernbitcoiners, he just doesn’t know about it yet. Although, given his capital and age, Warren Buffett could well afford to miss the Bitcoin revolution.

Everyone else should seriously think aboutcan you afford to miss the bitcoin revolution?Perhaps, at this point we will leave you to your own devices so that you can think about the answer to this question.

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