My thoughts: Screw Warren Buffet. Who cares?
Read his actual quote - It's just a "NO SHIT" that logically makes no fucking sense as to why bitcoin shouldn't be valued.
His quote:
Stay away from it. Its a mirage, basically.
Its a method of transmitting money. Its a very effective way of transmitting money, and you can do it anonymously and all that. A check is a way of transmitting money, too. Are checks worth a whole lot of money just because they can transmit money? Are money orders? You can transmit money by money orders. People do it. I hope Bitcoin becomes a better way of doing it, but you can replicate it a bunch of different ways, and it will be. The idea that it has some huge intrinsic value is just a joke in my view.
My response:
The US dollar is a way of transmitting money as well. A very effective way of transmitting money - it would be far less effective than bitcoin if everyone accepted bitcoin... You can do it (spend cash) anonymously and all that. Should we stay away from cash money too? NO - These things make it valuable. Checks are fucking retarded you can't just buy stuff with a check its a pain in the ass, you have to cash it, pay a fee, or have a bank account in which case it takes days to clear....
Soooo when bitcoin was under 10 cents per bitcoin it would still have been a bad investment in this guys mind - and if you did the opposite of follow his advice then you could very well be a millionaire/billionaire.....
Bitcoin rose too fast, just like gold did, and so it was bound to drop back down even if it was going to continue to climb eventually - the price was just artificially high because the skyrocket created a huge demand for bitcoin. Any idiot can see that happening / coming - but in the long run I think bitcoin is here to stay for the next 60 years AT LEAST - unless governments make it illegal or people find a better alternative, in which case it will probably STILL stay around, it just won't do as well.
So yes, bitcoin will struggle for the next year, maybe two, maybe three, but eventually people will see it for what it is and as more coins are released and the initial hype dies off the price will slowly become more and more stable. In the long run Warren Buffet could not be more wrong. It's just not a good investment at this point in time - I'd wait until it drops under $250.