Thread on chat w millennial who quoted Buffett twice to justify buying BTC (almost verbatim) Mil: Bitcoin is cheap, are u buying? Me: Junk is normally cheap, I'm more interested in value? Mil:I mean it was 60,000 & now it is below 17,000 Me: So what is it worth? Mil: much more
Me: Someone thinks it isn't, but how do u know its value? Mil: Price is what u pay, u getting value now. Me: But now the trend is lower? Mil: Yes, but it bounced over 10% this week? Me: So its in a downward trend and very volatile? Mil: This is just a cheap price for good value.
Me: Zero could be the bottom. Mil: Never. No-one wants fiat currency, the Dollar will go to zero before Bitcoin. It is also worth so much more. Me: But you just said that the way you determine its worth is what it is trading at? (Pause) Mil: So you don't think it's a steal now?
Me: It's a chance to speculate, but I can't tell u how to value any crypto coin Mil: But if fiat currency is dropping 'cos there is so much of it, surely Bitcoin is worth taking a big bet on because it is scarce. There are only 21 million. Me: Tokens, splits, other coins is it...
really so scarce? And even if I agree with you. Scarcity on its own doesn't translate into value. There needs to be ever increasing demand for something scarce. I can create a coin that is limited to 20 million tomorrow, it doesn't mean that it will be worth anything, does it?
Mil: Okay but it's decentralized, and it can be used to purchase things anywhere in the world almost instantly? Me: So governments are fine with that? (Pause) Mil: Well, that's the point, we don't want to be controlled by governments. Me: Doesn't running the block chain register
& the mining of coins use lots of expensive energy to run? Mil: I think that could be why it's been dropping? Me: So you don't think it's because of FTX, Lunar & other failures that people have become fearful? Mil: Yes, the best time to buy is when there is blood in the streetsThis post is based on this twitter thread.