hey what's up guys bitcoin is going to the moon in this video we will take a look at the bitcoin market then we'll take a look at why the biggest bitcoin haters are now silence let's take a moment and see what is going on with bitcoin bitcoin just recently reached new local high hell yeah i don't want to sound so excited because i'm really not i'm used to beating fluctuations if bitcoin goes up i'm like okay great if bitcoin goes down i'm like is this the time to buy more some one of those guys they do not get too excited because they make some profit as george soros once said if investing is entertaining if you're having fun you're probably not making any money good investing is boring i agree with him at least for me bitcoin is boring investing if i have a long-term horizon and that's exactly what i have nonetheless let's go back to bitcoin bitcoin just broke thirteen thousand five hundred dollars as of the time of this recording reaches its local highs and what is very interesting about this rise is because everything else is down stock market was down yesterday by 2 percent today is more or less flat gold has been training down since august peter shiel is probably very mad mourn him later on but bitcoin seems to be the only asset to continuously making new highs for the past two years the highest bitcoin price point was slightly under 14 thousand dollars and it was back in june 2019 if bitcoin breaks fourteen thousand dollars we will be on the verge to make new all some highs most of the bitcoin haters have been sitting silence lately but they are well known figures in traditional finance and let's go back a bit and see what they had to say about bitcoin first one in the list is the gold bug jim records let's take a look what he said about bitcoin okay what about bitcoin because that would be now you're laughing i don't know why you're laughing goldman sachs says cryptocurrencies are going to zero yeah i said i i'm not sure bitcoin has a use case for criminals at 200 a coin so i could see bitcoin going to 200 and staying there that was where it was before this bubbles i would have thought if you're saying we've got a debt crisis coming the stock market goes down gold is going to go up i would have thought you'd say okay things like bitcoin would be a nice alternative investment things like bitcoin but not bitcoin actually the key is your your prior guest from senior vice president from ibm ibm and intel are going to own this space the intel has the hyperledger sawtooth and ibm has hyperledger fabric these are going to dominate the block chain there's some boutiques out there forget the coins forget you know ether and nipple and all that what's the blockchain permission that was the key word your guests use permission me that's how you get trust uh you know so to send you these clunky math problems if it cost me 60 to send you fifty dollars a bitcoin it's not a good deal for me so it bitcoin's a dead end as a currency uh the speculative you know bubbles we're off the top and it's going down to two hundred dollars jim rickards believes bitcoin is not going to zero but instead is going to 200 because this was the price when it was mostly utilized by criminals according to him bitcoin is the dead end as a currency jim rickard has been wrong for many decades his permanent stock market bear but hey if you call a market crash every day eventually you will get it right he has been wrong not only in the stock market but also on bitcoin next one on the list is actually an investor that i have a lot of admiration and respect too he's very knowledgeable about the stock market but unfortunately not so much about bitcoin i'm talking about warren buffett let's take a look what he said about bitcoin i was at a conference the allen company conference in arizona the tech conference and bitcoin was the big two syllable word that everybody was talking about and trying to understand and what just curious your thoughts on that stay away from it stay away from this basically i mean it's a it's a method of of transmitting money and it's 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 our 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 and the idea that it has some huge intrinsic value is just a joke in my view hey warren i've got a question about bitcoin you know jamie dimon called it a fraud back in october you followed up with uh comments in december saying that you thought it was a mirage jamie dimon yesterday backed away from those comments saying that bitcoin is a fraud have you rethought your position on bitcoin and how would you feel if some of your portfolio banks wanted to make a market in bitcoin wanted to trade bitcoin wanted to make a business out of bitcoin trading yeah well we don't we don't tell our the banks in the portfolio anything about their operation but in terms of cryptocurrencies generally uh i can say almost with certainty that that they will come to a bad ending now when it happens or how or anything else i don't know but i know this if i could buy long-term puts if i could buy a five-year put on every one of the cryptocurrencies i'd be glad to do it but i would never short of dimes worth have you thought about trading the futures to take a negative position on bitcoin no you would not do that no there's no way there's no reason i i get into enough trouble with things i think i know something about why in the world should i take a longer short position to something i don't know anything about so uh you know we don't have to know what cocoa beans are going to do or or any or cryptocurrencies we just have to focus on eight or ten stocks that businesses basically that we think are decent businesses uh but i do think that i think what's going on definitely will come to a bad ending i mean you've got virtually everybody i have a class i have 11 schools coming on friday the questions will be on bitcoin and i won't know the answers although when we sat down warren you did say i should have announced that we were getting involved in bitcoin this morning well that is true i mean to uh that would be much more interesting to the audience that that we were going to issue a whole series of cryptocurrencies tomorrow but no we aren't believe me and we don't own any we're not short any we'll never have a position in them well warren buffett is a very smart guy but he just does not understand bitcoin and that's okay most of the old people do not understand bitcoin you don't have to invest in it if you do not understand it but do not advise younger generations to stay away from it just because you do not understand bitcoin main purpose is not really transmitting money as he believes bitcoin's main purpose is the store hold of wealth with checks you cannot store much of the wealth can you don't like bitcoin put your money where your mouth is and buy those 5 year put options on bitcoin actually that video was made 5 years ago and if he would bought 5 year boots he wouldn't be so happy right now at least i appreciate the fact that he said that he would never show the bitcoin unlike his friend bill gates bitcoin and icos i agree completely uh it's one of the crazier speculative things where it's not as as a an asset class you're not producing anything and so you shouldn't expect it to go up it's it's kind of a pure greater fool theory type uh investment um so you know i i agree i would i would short it if there was an easy way to do it there is an easy way to do it let's be honest you were in short [ __ ] next on the list it's actually a warren buffett's partner charlie munger let's take a look what he said about bitcoin well bitcoin as a as a the computer science behind that's behind bitcoin is a great triumph for the human mind that's what captivates all these people they've actually created a product that's hard to create more of but not impossible now that is very peculiar but they've managed to do it so a lot of the computer computer science people love it just because it's such an extreme achievement of computer science i of course have no interest in in that because it's not my subject and i see an artificial speculative medium that people are buying just because they think they can sell to somebody else at a higher price even though it inherently has no intrinsic value and so i regard the whole business as antisocial stupid immoral it's not having any desirable social purpose we've got debit cards it isn't like we don't have a payment system we've got wechat in china incredibly efficient payment system china doesn't need bitcoin and if you have a wechat why would you do it in a medium where the value changes enormously nobody is right mine would want a payment system where the very thing you were using went up and down by 20 of the day now i regard the thing as a as a combination of dementia and immorality and i think the people that are pushing it are a disgrace five years ago right here in these chairs on fox business you called it uh rat poison but that was when it was about 150 uh today it's 9 000
it had hit 19 000 so it's more expensive rat poison more expensive rat poison i guess no matter how much bitcoin appreciates in value you can always make the same argument charlie is a very smart guy but just like warren buffett they will never understand bitcoin considering the fact that they spend their entire lives in traditional market next one in the list is my favorite bitcoin hater someone actual that i really despise the goldbach peter schill let's take a look what peter shill had to say about bitcoin yes there is a an artificial scarcity there because they can only mine and i use the word mine in quotes because they use mining to try to create value that doesn't exist by by using terminology associated with gold but you could since you can only mine 21 million of them that's the limit but of course there's no limit to how many competing uh digital currencies that have no value at all just like bitcoin can be created in fact bitcoin is already forked twice they have bitcoin cash and they have bitcoin gold and there's 21 million of those and there's an unlimited number of forks that can come off of the bitcoin network uh so the only value in the cryptocurrency now is the fact that it's going up and people are buying it because they believe they'll be able to sell it to somebody else who also thinks it's going to keep going up because he can buy it he can sell to somebody else who has the same outlook but as soon as the currency really starts to decline it's going to implode and eventually it will go down to his true value and jamie dimon is right and i don't often agree with jamie dimon but in this case i do i think the ultimate value is going to be zero and i do think that the idea was born out of the frustration from uh 2008 you know i was one of the people who predicted that crisis who was short the subprime market and i understood the problems with the fiat monetary system and a lot of the people the early adopters of bitcoin understood the problems with fiat money with the dollar with the euro with the yen with all the quantitative easing and zero percent of negative interest rates but the problem is uh these crypto currencies are are have more in common with fiat than people believe these are fiat cryptocurrencies uh what people really should be doing if they're worried about the dollar or the euro or the yen is they should be buying gold they should be buying a real alternative who's fear that is real honest money excuse me who's fiat fiat means that somebody gives this thing value no no fiat well fiat just means let it be by decree right it means this is money by fee and i'm the government and i'm making this money so who is doing that with bitcoin no no but the the the the backing of fiat currency comes just from faith right it's just confidence that it's always going to have value right faith in an issue in common with fiat it doesn't it doesn't matter there's no there's no intrinsic value to the bitcoin all money previous to governments creating you know paper money all money was a commodity first and then a medium of exchange second bitcoin in the commodity money that's a good sign but it's a commodity that has no value it has no use i think commodities are valuable the market values come at gold is valued at what the gold traders value it at okay but because there are things you can do with gold and you people have value what percentage of the value of gold trading on commodities exchanges is actually from use as jewelry or in medicine or in science you can find all kinds of crazy reasons to rationalize why the price is going up but it's going up for one reason only and that's because people are buying it like they have to make up reasons but eventually it's going to crash okay and that's how bubbles work okay before okay what people liked about it is changing especially with criminals because initially criminals were attracted to it because they believed it was anonymous and now i've i've heard situations where criminals were caught precisely because they used bitcoin it's almost like a digital fingerprint and as i think the governments are going to crack down more and follow this then i think eventually criminals are going to walk away from it and that was its only real value peter's claim is that we could keep changing our stories as to why it's valuable and and what i have to challenge in that question is who do you mean we keep changing our story there is no bitcoin company there is no bitcoin marketing organization there are people over the world who are using open source software to build a connected network of computers to achieve a result it's rather like the early internet there were people all over the world connecting their computers they were getting their newspapers from them they were getting their email from them and people laughed at those people they said you're using a ridiculous system you're using something that's never going to have value you're changing your story every day it's for porn it's not for porn it's for online banking but eventually we figured it out and now we all use the internet peter schill is a great schiller he is a great and well spoken salesman even though his track record as a professional investor stinks he avoided american economy in stock market for the past decade while it was one of the best decades in history for the stock market instead he invested in europe europe still has not recovered from 2008 financial crisis i feel very bad for his investors if there are still any left he completely dismissed american stock market and he completely dismissed bitcoin according to him he had a chance to invest in bitcoin 10 years ago i wish i would have the same chance but back then i was still in high school and knew nothing about finance and especially bitcoin peter shiel is notorious goldbach but he doesn't even buy physical gold he speculates and gold mining stocks gold will always be there but gold mining stocks have very short life duration mining gold is very tough business peter is a good at talking but he's terrible as a professional investor let me know what do you guys think about those bitcoin haters leave your thoughts in the comment section below smash that like button and subscribe
