Rich Dad Poor Dad author Robert Kiyosaki says most people should sell bitcoin now that the price of the cryptocurrency is “crashing.” However, he affirmed that he is waiting to buy more bitcoin, emphasizing that “all markets go up and down.” The famous author noted that his strategy is similar to Berkshire Hathaway CEO Warren […]
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Billionaire Ricardo Salinas Fires Back At Warren Buffett’s Bitcoin Slander
Bitcoin is not topping the list of the favorite investments of some big names in the financial sector. One of those is billionaire Warren Buffett who has not been shy to voice his displeasure with the digital asset. This time around, Buffett has once again made known his hatred for the digital asset by saying that he would not buy all of the BTC in the world for . This has drawn the ire of investors in the space, one of which is Mexico’s third-richest man, Ricardo Salinas Pliego.
Warren Buffett Disses Bitcoin
Billionaire and legendary investor Warren Buffett recently made some remarks about bitcoin. The most popular of these have been the fact that he said that if he were offered all the bitcoins that exist for a measly , he still wouldn’t take the deal.
The Berkshire Hathaway head said this at the annual shareholder meeting where he once more reiterated his disdain for cryptocurrencies. He explained that bitcoin had nothing to offer, making it an unproductive asset with no tangible production.
Related Reading | Tether (USDT) Q1 Trading Volume Plunges To .3 Trillion In Quarterly Low
He compared the digital asset to other stores of value which include land and apartments. Both of these, the billionaire admitted he would jump at a chance to put money into them. However, he wouldn’t do the same for bitcoin because it doesn’t produce anything and he would “have to sell it back to you one way or another.”
Despite the popularity of the digital asset over the years, the billionaire is still not convinced of its valuability. He pointed to the fact that he can’t tell for sure where the asset will be in the next five or 10 years but remains completely sure of the fact it does not produce anything.
“It’s got a magic to it and people have attached magics to lots of things,” Buffett noted.
Salinas Fires Back
Buffett’s comments about bitcoin have no doubt stirred up criticism from the bitcoin community. They came out en masse to support and fire back at Buffett after the video made the rounds on social media. Bitcoin supporter and Mexican billionaire Ricardo Salinas Pliego also took time out to rebuke Buffett’s comment.
BTC holding the ,000-,000 support level | Source: BTCUSD on TradingView.com
Salinas noted that Buffett was old and immune to change. Also adding that he was obviously commenting that he has no understanding of whatsoever.
It's sad to see him rambling on about a suubject he clearly does not understand. That's why the future ALLWAYS belong to the young and not the OLD. https://t.co/2L5Lc8zHjE
— Ricardo Salinas Pliego (@RicardoBSalinas) May 1, 2022
Related Reading | Bitcoin Halving Model Suggests ,000 Bottom Before Year’s End
The billionaire has not been the only one to fire back. Others have pointed out that Buffett continues to have holdings in crypto-friendly bank Nubank, as well as SBI Holdings and Bank of America which own more than 10% of Ripple and a Ripple partner respectively.
BTC continues to maintain a good position on the charts. It is currently trading at ,690 at the time of this writing.
Featured image from Bitcoin News, chart from TradingView.com
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Take a Page from Buffett’s Playbook with Bitcoin Options from Hedget
Warren Buffett said in one of his famous quotes, “Be fearful when others are greedy, and greedy when others are fearful”. Sometimes, we may get too cautious of our investments that we end up not taking the actions that could potentially transform our lives. When it comes to buying and selling, every investor knows that to get maximum profits from sales, they have to seek to buy at a relatively lower price.
Unfortunately, it is not every time you see market prices fall; most times, market price fluctuations could get you so confused that in an attempt to minimize risk, you end up with numerous indecisions. Some other times you may have to wait a long time with your idle capital as you wait for your desirable buy order to get filled.
What you may not realize is that you can earn a steady revenue stream while you are waiting by trading on options. Buffett himself once made .5M in 5 minutes using this very strategy. That, therefore, begs the question, what is options trading and how can you leverage it to minimize risks and earn more profits?
Options trading explained
For a beginner, options is a system of trading that involves the purchase and sales of assets, securities or derivatives at a stipulated price within an agreed period. This means that within a specific period, you’ll be able to buy and sell at a fixed price regardless of the existing market prices within that same period.
By this definition, three elements make up an options trade:
- Option type (buy or sell option)
- A fixed price (or strike price)
- The agreed period (after which the option expires).
For an options trade agreement to proceed, you as the trader (either the buyer or the seller) would have to pay a certain amount to secure the option. This is known as premium, it is merely a fraction of your trading capital.
Within the period of this options agreement, you will be able to either exercise the option or not, depending on how favorable market conditions are. If you decide not to exercise the option, it will expire after the time period elapses and your loss would be only the premium amount. In which case the loss is only a fraction of what you could have lost if you were trading directly.
There are two examples of types of options trading:
1. Put option
Buying this type of option simply means you have an asset that you wish to sell. If you expect market prices to drop and you fear your assets will lose much in value within this period, then this option is for you.
For example, supposing Bitcoin prices stand at ,000 and David has 1 Bitcoin which he is willing to sell for the same amount but he fears that the prices will drop in the coming month, he can decide to pay a premium to get an options contract starting from the 1st of June to the 1st of July. He will therefore set the strike price at ,000 for the period of this contract.
If towards the end of April, the Bitcoin price falls to about ,000, David can decide to exercise this contract by surrendering the collateral (which is the 1 Bitcoin he owns). Once this is done, he receives ,000 instead of the ,000 which would have translated into a ,000 loss if he was trading directly.
In contrast, should the price of Bitcoin appreciate to about ,000 during this period, David may decide not to exercise this contract to sell his Bitcoin for less. In this case, he forfeits the contract and loses only a fraction of his capital which is the amount paid for the premium.
2. Call option
This category of options trade marks you as the buyer. After obtaining a call option, you’ll need to decide on the amount you would buy the asset and specify the period after which it expires.
Taking David as an example once again, let’s say on June 1st he decides to purchase a call option for 1 Bitcoin at a specified price of ,000 since he expects prices to rise. He consequently pays the premium fee and sets the contract to expire on the 1st of July.
If towards the end of June Bitcoin begins selling at ,000, he may decide to exercise the call option by depositing the required collateral which in this case is the strike price of ,000. That way, he saves up to ,000 which he could have spent had he decided to buy Bitcoin at a later date.
However, supposing the price of bitcoin slumps to ,000, he may decide not to exercise the call option and in which case he’d lose only the amount of premium paid, minimizing risk in the process.
Call options are usually good for bullish traders who expect the market prices to climb.
Where can you trade options?
Options trading is available on the Hedget platform. Since their arrival in the DeFi space, the platform has brought amazing use cases for trading options. In addition to the above-listed options trading examples and digital settlements, they also provide the opportunity for cash collateralization and settlement.
The platform ranks among the first movers and market leaders of Bitcoin and cryptocurrency put and call options. Running on both Binance Smart Chain and Ethereum, they are currently tuning up their platform and preparing to crank up option liquidity through their strategic partners.
Trading options on Hedget is as easy as it can get, you simply have to visit their website at https://www.hedget.com and explore how you can enhance your crypto trading toolkit with techniques such as the aforementioned options trading.
Image by Sergei Tokmakov, Esq.
Millennials Trust Bitcoin More than Warren Buffett’s Berkshire Hathaway
An average investor reaching young adulthood in the 21st-century trusts bitcoin more than a three-decade-old bullish stock.
So it says in a recent study conducted by Charles Schwab. The U.S.’s thirteenth largest banking firm studied millennial investors’ self-directed portfolios for the year 2019. It found that a majority of them had more exposure to a young bitcoin trust than the mighty Warren Buffett’s Berkshire Hathaway (NYSE: BRK.A).
Grayscale, as the study revealed, surpassed the traditional stock with its over-the-counter, publicly-listed fund that holds bitcoin. Under the ticker GBTC, the fund registered profits of around 119 percent on a year-to-date basis. In comparison, Berkshire delivered a dwarfed 11 percent profit to its investors.
GBTC returns 119 percent gains in 2019 | Source: TradingView.com
The study further noted that GBTC remained absent in the list of top 10 investments picked by boomer investors. At the same time, Berkshire made it to the reputed index alongside Apple and Amazon stocks.
Generation Y Up for Bitcoin
Charles Schwab’s revelations closely followed what a survey conducted by Blockchain Capital had found in April 2019: That 27 percent of investors aged between 18 and 34 would purchase bitcoin over traditional stocks.
At the same time, 40 percent of participants found bitcoin more attractive than government bonds. 22 percent of them said they would buy the cryptocurrency instead of gold.
Another study conducted by Adamant Capital had concluded that millennials are the key factor behind bitcoin’s growth in the last decade. The Texas-based investment management noted that young investors would likely remain exposed to offbeat cryptocurrencies in the long run.
The least talked about but most important point is that Bitcoin is part of a broader social movement catalyzed by the global macro environment, political tensions and a coming of age millennial generation. Mark’s critique of the pitch is spot on imo https://t.co/nZcNUHp33m
— Phil Bonello (@PhilJBonello) December 13, 2019
Criticism
Not everybody agrees with the potential of bitcoin in assisting millennials to grow their wealth.
Certain traditional investors, including popular gold bull Peter Schiff, think the cryptocurrency will leave young investors in heavy losses – and that they should not flow with its ongoing hype-current.
“The good news is that all the Millennial Bitcoin hodlers who are about to get wiped out in Bitcoin are still young enough to make their money back,” Schiff tweeted. “They will also have a lifetime to benefit from the wisdom that comes from losing money and [learning] from your mistakes.”
But popular market analyst Rhythm Trader, a millennial himself, thinks otherwise.
The trader said his generations’ first impression of the legacy financial system was 2008’s economic crisis. He cited it as the core reason why bitcoin is poised to become the beneficiary of the so-called “Great Wealth Transfer.” Excerpts from his note:
“Millennials have demonstrated a strong trend of embracing the digital age with open arms while at the same time turning their backs towards the traditional financial system.”
Going by Charles Schwab’s latest study, the “Wealth Transfer” is taking place. Watch out, dear Buffett! The post appeared first on NewsBTC.
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Rat Poison? Millennial Investors Prefer Bitcoin To Buffett’s Berkshire Hathaway
Bitcoin has in the past been called a Ponzi scheme, a scam, a tool for money laundering and criminal activities, and even has been dubbed rat poison by the Oracle of Omaha himself, Warren Buffett.
But that “rat poison” is a more sought after investment in millennial investors than the Buffett-backed Berkshire Hathaway, and many other top stocks.
Bitcoin Outranks Traditional Stocks In Millennial Investors
Cryptocurrencies like Bitcoin , Ethereum, Ripple, and thousands and thousands more, are an emerging asset class that despite being new, untested, and unproven, are a more appealing investment to millennial investors than many of today’s top-performing stocks.
Related Reading | Bolster Your Personal Opsec With This Crypto Investor Checklist
According to a new report from brokerage firm Charles Schwab, it shows how the Grayscale Bitcoin Trust from Grayscale Investments stacks up against the likes of Netflix, Walk Disney, Microsoft, and Warren Buffett’s Berkshire Hathaway.
The study surveyed a number of millennials, gen Xers, and baby boomers, and found that of the millennial subset, Grayscale’s Bitcoin Trust received more inflow than Walt Disney, Microsoft, Netflix, Alibaba, and Berkshire Hathaway.
The only traditional stock investments that outshined Bitcoin in millennial investors, were Facebook, Tesla, Apple, and Amazon. Bitcoin was nowhere to be found within the top-ranked investments in gen X or baby boomer groups.
Why BTC And Not Netflix, Microsoft, and Other Traditional Assets?
But why Bitcoin and not less-risky stocks or other traditional investments? Millennials were raised alongside the emergence of the internet, and are far more tech-savvy and open to advancements in technology, allowing them to adapt to changes faster than their older counterparts.
Millennials also watched and witnessed the wealth generated during the dot com boom, but were too young to participate. Many of them refuse to miss out on what may be as revolutionary and disruptive of a technology – potentially even more so.
Lastly, millennials have developed distrust in modern governments and the fiat currencies issued by them. Debt is skyrocketing, and the global economy teeters in the balance being grossly mismanaged by world leaders.
This distrust in governments and power-controlling individuals has caused millennials to lean toward trustless, decentralized technologies that remove the need for a controlling third-party. Bitcoin is this, but for money – which makes the entire world go round.
Related Reading | Logarithmic Growth Curve Charts Bitcoin Price At 0K in 2028
Because Bitcoin has such potential, millennials investors are willing to risk it all on the crypto asset, in hopes of not only becoming rich but ushering in the future of money as we know it. And with Bitcoin price predicted to reach over 0,000 to as much as million per BTC, it could create an entirely new generation of wealth.
Featured image from Shutterstock
The post Rat Poison? Millennial Investors Prefer Bitcoin To Buffett’s Berkshire Hathaway appeared first on NewsBTC.
Wells Fargo, Warren Buffett’s Investment, Paid 20% of Bitcoin Market Cap in Fines
In his recent interview with CNBC, America’s most successful capitalist Warren Buffett reiterated his negative stance on bitcoin.
The legendary investor told Becky Quick that bitcoin was a delusional asset which “attracts charlatans,” adding:
“If you do something phony by going out and selling yo-yos or something, there’s no money in it — but when you get into Wall Street, there’s huge money.”
The comments didn’t surprise. Buffett has already made a name of himself for being a staunch bitcoin critic. Last year, at the Woodstock of Capitalism, Buffett and his sidekick Charles Munger gathered to talk investing and ended up providing one of the most reference quotes on bitcoin. Buffett warned that cryptocurrencies like bitcoin would come to a bad end, while Munger called them a “dementia.”
However, this time, Buffett, in particular, tried to kick the bitcoin fans below their belts, by calling them frauds. It was certainly not going to go well among the white suits who primarily invested in bitcoin. Barry Silbert, Founder, and CEO of Digital Currency Group, for instance, took potshots at Buffett for investing in a firm named in multi-billion dollar frauds.
“Wells Fargo, a Buffett investment, has been fined 93 times for fraud and other abuses, for a total of .8 billion in fines since just 2000,” wrote Silbert. “I’ll take bitcoin’s “charlatans” over that any day.”
Wells Fargo, a Buffett investment, has been fined 93 times for fraud and other abuses, for a total of .8 billion in fines since just 2000
I'll take bitcoin's "charlatans" over that any day https://t.co/9OZkzxgQ7x
— Barry Silbert (@barrysilbert) March 9, 2019
The fines make roughly 20-percent of the Bitcoin’s market capitalization.
A Hypocritic Capitalist
A brilliant investor that he had become, Warren Buffett cannot let go of his past full of shady insider deals. In retrospective, his father was a stock market broker and a congressman. These are the only people who could trade on insider information without having to deal with criminal charges. Buffett spent a gala time in his father’s office learning about stocks and eventually bought his first shares at the age of 11.
By the time Buffett had come of age, he was already investing in firms suspected in financial frauds. His tales about Goldman Sachs fraud and what he did to bail himself and his company, Berkshire Hathaway, out would take a separate article to explain. But the case explained what power and money – and a handful of good connections – can do. (To know further about it, I would recommend you read this article.)
And indeed, Buffett is 90% brilliant because of his political connections. The US government seeks his help while making their bailout decisions. And when an investor of such caliber gets firsthand information about the billions of dollars in bailout money coming to Bank of America and Wells Fargo before anyone else, then it is likely he buys millions of share in both the firms at a cheaper rate to sell them a few years later at a higher price.
Did Warren Buffett think about working with charlatans, then? No. It shows the hypocrisy.
Why Does Buffett Hate Bitcoin?
Warren Buffett is 88. One cannot expect him to understand the complex nature of cryptocurrencies, the Merkle trees, the proof-of-work, and whatnot. He is the same person who missed on Apple earnings as late as 2011. Instead, Berkshire invested billion in IBM, thinking it was a superior firm at that time. As the world already knows, Buffet’s firm exited IBM on a substantial loss. At the same time, Apple’s stock value had quadrupled.
As a crypto believer, I do not expect him to understand bitcoin in his remaining life. For the very same reason, his opinions have to stop mattering to young investors, the denizens, who understands how the bitcoin’s underlying tech works. But to say they are charlatans brings me to quote British economist John Maynard Keynes:
“Capitalism is the astounding belief that the most wickedest of men will do the most wickedest of things for the greatest good of everyone.”
Like they will.
[Disclaimer: The opinions discussed in this article are of the author. NewsBTC does not claim any responsibility for errors/claims made in the article.]
The post Wells Fargo, Warren Buffett’s Investment, Paid 20% of Bitcoin Market Cap in Fines appeared first on NewsBTC.
Warren Buffetts Holding Invests $600 Mln in Fintech Firms Focused on Emerging Markets
n Berkshire Hathaway whose CEO is outspoken crypto critic Warren Buffett has invested 0 million in two fintech firms focused on emerging marketsn
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