Warren Buffett Says Bitcoin Will “Do Nothing”; The CEO of Immutable Holdings . responds

(Kitco News) — At Berkshire Hathaway’s annual shareholder meeting earlier this month, Warren Buffett, Chairman and CEO of Berkshire Hathaway, hit Bitcoin again.

“If you told me you had all the bitcoins in the world and you offered it to me for $25, I wouldn’t take it, because I would,” Buffett said at the meeting. “I’m going to have to sell it back to you somehow. It won’t do anything.”

Jordan Fried, CEO of Immutable Holdings, explained why he disagrees with Buffet over Bitcoin. Fried emphasized that “despite the crypto community trying to educate people about bitcoin over the past five years, some of the world’s most sophisticated investors, Buffett and Charlie Munger, still call bitcoin “rat poison.” I think these guys should just stay in their aisles and talk about the things they’re really good at, and it’s a valuable investment.”

Fried spoke to David Lin, Anchor at Kitco News, about the Bitcoin and NFT (non-fungible token) markets. The Immutable Holding is the first ever wallet for the Breakout Blockchain business. It has more than $100 million in assets under management. Fried is also the founder of NFT.com, and he just launched it publicly.

Fried continued to talk about Buffett’s recent remarks about bitcoin, while explaining how the blockchain works. “Buffet’s statement made in itself shows how ignorant he is about how blockchain works. A blockchain is a decentralized network of computers, where computers are compensated in proportion to the CPU, bandwidth and storage they contribute to the network. A productive good” .

Discussing why Fried believed the two legendary investors were making such negative comments about Bitcoin, Fried emphasized, “Although I learned a lot from all of their books and from their mentor, Benjamin Graham, I don’t think they understand technology. Bitcoin is just software, and blockchain is just software. We can use it to solve these problems. This is where Ethereum comes in. Ethereum is the gas of a public application network and the smartest investors understand that.”

“The blockchain network is so productive that it motivates people. For the first time in human history, we have two or thirty multi-billion dollar companies dedicated to creating better microprocessors and better computer chips to solve complex mathematical problems, adding blocks to the blockchain,” Fried continued.

A common perception is that a lot of old school investors would rather invest in businesses that generate cash flow than Bitcoin, because it is difficult to measure the cash flow that Bitcoin generates. But Fred thinks the opposite is true.

“When you look at the bars of the net, this is the first time in human history that you can send me money while I’m in Puerto Rico and you’re in Canada,” Fried noted. “We don’t have to go through a traditional bank. We don’t have to go through PayPal, Venmo, Cash App, WePay, or any of these other centralized payment apps.”

“Bitcoin came in handy when the Ukrainian government did not want to rely on the Red Cross or traditional funding to raise hundreds of millions of dollars from around the world,” Fried explained. “The donations were made directly to the Ukrainian government to their crypto wallets in all different types of cryptocurrency,” said Fred.

Speaking about the NFT space, Fried noted that the price of NFT has recently declined in value terms.

“When you look at the growth trajectory of NFTs, it’s too early for NFTs. If you look at how we use NFTs today, it’s not how we’re going to use them in five to 10 years.”

“Looking at the entire world of NFTs, we live in a bubble. You may have read or heard about NFTs, but the truth is that no one in the world has ever bought an NFT. The actual data, if you look at the blockchain, there are less than 6 million people in the world. The world as of May 2022 has bought Bitcoins.” “This number is growing with about 6 to 8,000 new portfolios connected to the NFT project, but that is a very small number.”

Fried indicated that he still has a $1 million price target for bitcoin. “A million dollars is not a million dollars anymore. A billion dollars is not a billion dollars. If you look at just the cost of assets, the CPI is off the charts,” Freed said. “We may only see a million-dollar bitcoin because there has been a ridiculous amount of government money printing in the last couple of years. The Fed is trying some aggressive tactics to control money printing, but I don’t think the Fed will work in the end.”

For more information on Jordan Fried’s views on the Bitcoin and NFT markets, please watch the full video above.

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Not giving an opinion: The opinions expressed in this article are those of the author and may not reflect the views of Kitco Metals Inc. The author has made every effort to ensure the accuracy of the information provided; However, Kitco Metals Inc. cannot. Nor does the author guarantee this accuracy. This article is for informational purposes only. It is not a solicitation to conduct any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. does not accept The author of this article will be liable for losses and/or damages arising from the use of this publication.

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