Quote from: thecodebear on Today at 07:09:08 PM

Quote from: teosanru on Today at 05:52:10 PM

How are these institutions buying in such large quantities and all.the governments are just sitting and watching this. The pension funds are expected to be the safest investment investing these funds in something like bitcoin which variates more than 30% in a day is not really a wise decision unless consented by the real owners of the money.

Quote from: bitmover on Today at 12:04:28 AM

Quote from: HardFacts on January 09, 2021, 05:43:40 PM

How Bitcoin Gets To $100,000 Next: Morgan Stanley Boosts Stake In Microstrategy, Opening The Floodgates

https://www.zerohedge.com/markets/how-bitcoin-gets-100000-next-morgan-stanley-boosts-stake-bitcoin-fanatic-microstrategy

I can see your enthusiasm and I share it.

However, we are in ath again. This is not the best moment to be brave, but the best moment to be cautious.
Be brave when there is blood in the streets.

Can't agree more but I don't really think Warren Buffet is the right person for a trading advise. He is pretty intelligent at value investing and therefore he would never invest in Bitcoin as it's impossible for him to derive it's value.

Well the institutions aren't buying in large quantities compared to what THEY have. They are just buying in large quantities compared to what is normally bought in Bitcoin. They have enormously more money than the money than the entire market cap of bitcoin. Of the very small amount of institutions that have invested so far, most of them are going to be under 1% invested in Bitcoin so far, and the majority of the rest less than 5%. Places like Microstrategy are an outlier. For a pension or investment fund, putting 1% or a few % in the best growth asset in the world is a safe bet long term. If they are like buying futures contracts trying to guess what the price will be on a certain day, sure that's dumb, but now they are actually investing in Bitcoin, not just betting on its price, so that is safe for them.

And yeah, when it comes to Bitcoin, Warren Buffet's advice is completely worthless. He is very good at a specific type of investing and that is value investing of companies. He's not even good at valuing tech companies as he basically missed the first two decades of the tech boom, so he is an extremely poor judge when it comes to valuing Bitcoin. That said, his advice quoted above is "be brave when there is blood in the streets" is good advice in general, as anyone who bought at the bottom of the bear market knows. But using that quote to say Bitcoin is risky right now, ignores what we all know about bitcoin bull markets, and that is that they go tremendously higher than what we've seen these past few months, and we are still in the early stages of the current bull run.

Yes it's true actually value investing is pretty different from fundamental analysis It entails valuation models using various methodologies and assumptions and every new valuation is an absolutely new thing in itself that can be completely different from the previous one. So I don't really blame Warren Buffet for that he is a master in his niche. Coming to the valuation of Bitcoin how actually do you value Bitcoin? It's not a company? It's not even an asset technically? It's actually a currency and a currency can be measured using it's flow. But every increasing dollar BTC is becoming more prone to scaling issues isn't it?

Talking about Institutional buying I think you are right it isn't that much compared to their total portfolio. Moreover I read an article on coindesk that day which suggested that most of the bitcoin buying is being done OTC. Here is the chart: