Quote from: tylerderden on August 04, 2018, 05:50:52 PM

Quote from: jaysabi on July 24, 2018, 07:38:47 PM

Quote

I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy.
-Warren Buffet

This quote is constantly bandied about as justification to invest in Bitcoin, and especially now that there has been some nice price movement in the upward direction. But this Warren Buffet quote is only relevant with the proper context, which is that Warren Buffet only invests in things he has a fundamental understanding of and can quantifiably value. You can confidently be greedy when others are fearful if you have a sound investment thesis and are a fundamental value investor. This is how he turns his investments into home runs, he knows what he's buying and what it's worth and can weather the negative sentiment until the market learns what he already knows. This doesn't apply at all to a speculative investment like crypto. Following this advice willy-nilly is gonna get you burned because you're misunderstanding the intent and the application.

Don't not buy Bitcoin if that's what you want to do, but don't fool yourself into thinking you're following Warren Buffet's advice. Warren Buffet doesn't speculate, and if you're buying crypto, you're speculating.

So you are on a forum that's bitcoin related and saying that you shouldn't buy bitcoins because it's speculative, that's completely wrong of you. Bitcoin is based on the rarity of coins as the maximum amount of coins that anyone can mine is 21 million and there are quiet a lot of people more than that so every person will not be able to get a complete bitcoin. So when everyone will come to know about bitcoin then the price will be at that stage that everyone of us holding more than 1 bitcoin will be multi millionaires.

Funny about how I post bitcoin-related thoughts on a bitcoin-themed forum, right? Or did you think the only purpose of this forum was to be an unquestioning echo chamber of hype? It is without a doubt that Bitcoin's value does not come from rarity and comes exclusively from speculation. When people buy Bitcoin, it's not because it's rare, because essentially it is not. You have no trouble at all buying as much Bitcoin as you want, there's no shortage of sellers. You're confusing a finite supply with actual rarity. People buying Bitcoin are speculating that because of the finite supply, some day it will be worth more than it is today. That's 100% speculation, based on the thesis that overall demand might one day render it rare and therefore more valuable. You can't call that anything other than speculation.

Expecting that because you bought a bitcoin, someday you will be a millionaire is just silly.