One of the biggest struggles faced by Bitcoin and the rest of the cryptocurrency market has been to convince the mainstream ecosystem of its benefits and use-cases. One of the biggest naysayers of the cryptocurrency industry is Berkshire Hathaway CEO Warren Buffett, who once compared the world’s largest cryptocurrency to rat poison.
In an ironical twist of fate, analysis suggests that Bitcoin actually beat Berkshire Hathaway stocks in terms of returns and growth over the years. Buffett has been quite vocal about his Bitcoin criticisms, going on to state,
“It [Bitcoin] doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me. It’s a gambling device… there’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything.”
According to calculations, Berkshire Hathaway’s stocks have gone up by 997,900 percent since Buffett’s takeover in 1964. Bitcoin managed to steamroll this record in its decade-long existence, with the king coin growing by a whopping 720 million percent in 10 years. Bitcoin’s price was first released to the public on October 5, 2009 by the New Liberty standard, with a price of $0.0007. Users of the cryptocurrency who had bought the cryptocurrency in 2009 are the ones who became multi-millionaires and billionaires when BTC spiked to its highest point in 2017.
At the same time, Berkshire Hathaway was performing really well as a mainstream stock under Buffett’s watch. If one had invested $1000 when Buffett had taken over in 1964, it would have yielded returns of up to $10 million.
Warren Buffett was in the news recently after Justin Sun, Chief Executive Officer of the Tron Foundation, won a chance to have lunch with the financial tycoon. The charity dinner will be attended by Sun and seven other members chosen by the Tron CEO. Justin Sun has revealed that the dinner will be a great opportunity to change Buffett’s mind on crypto. He had said,
“I am pretty sure that Warren Buffett has been misled by the media.”
Subscribe to AMBCrypto’s Newsletter
Bitcoin is an enterprise; its users are comparable to traditional shareholders, claims Goldmoney Founder
Bitcoin was conceived in the backdrop of banks bailouts and the 2008 financial crisis. The recession and the loss of faith in banking, financial institutions gave Bitcoin a platform to rescue the ones affected, giving them hope for a better financial system without the hassle of corrupt institutions. With the rise of Bitcoin’s fame, both in the darknet and in the mainstream, questions about its regulations had to arise.
The question was put to rest when the SEC/CFTC ruled Bitcoin as a commodity and taxed it. However, Goldmoney’s Roy Sebag brought this discussion up again recently in his tweet thread, where he said that Bitcoin as an enterprise is working towards its good, comparing its users to traditional “shareholders” among other things, while concluding that Bitcoin is a security. He tweeted,
“Is Bitcoin a security? <10 years old so regulators haven’t even had enough time to truly learn how it works (think Napster or Kazaa in early days). Miners are clearly issuing coins and responsible for governance, an absence of formal relations among them is irrelevant….”
In successive tweets, Sebag attributed miners with the role of “stewarding” the so-called enterprise. In return, these miners get paid in “direct fees” or in “share appreciation.” In Bitcoin’s case, it is the mining reward, which is “BTC”. Similarly, buyers are compared to “shareholders” with a common interest in the enterprise, i.e. profit. Sebag added,
“Coins trade at exchanges. The common enterprise is designed for the price appreciation of coin.”
Bitcoin could face a shutdown by the government, just like it did with big players in file sharing, said Sebag, who added that Bitcoin could also be interpreted as a security under the “34 act of the SEC.” The Goldmoney Founder concluded that “this realization rests on the belief that neither Bitcoin nor any common enterprise is truly decentralized.”
However, his inputs weren’t very well-received by many in the crypto-community. Casa’s CTO Jameson Lopp refuted Roy Sebag’s ideas, tweeting,
“Roy will believe what he wants to believe, though if he’s not actually participating in Bitcoin then his beliefs are irrelevant to its consensus formation.”
Subscribe to AMBCrypto’s Newsletter