Now That Bitcoin is Dead, What's the Next Big Thing?

Blockchain is Nothing but a Waste of Resources

If you offered Warren Buffett all the Bitcoin in the world for $25 he wouldn't take it.

He's also called it “rat poison squared,” and Berkshire Hathaway Vice Chairman Charlie Munger said trading in cryptocurrencies is “just dementia.”

I have to hand it to them, they’re really sticking to their guns on this one.

But here’s the thing…

They’re wrong.

They’ve been wrong since Bitcoin was under a dollar.

And they’ll continue to be wrong as Bitcoin goes to $100,000 and beyond. Here’s what else the Bitcoin ignorant have to say…

Warren Buffett Vs. Bitcoin

Take what Buffett says about Bitcoin with a grain of salt.

In the same interview where he said that Bitcoin is an asset that creates nothing, he also added that while Bitcoin is a “failed experiment going to zero” the underlying blockchain technology is revolutionary.

So, even though he doesn't understand Bitcoin, he's admitting that the technology behind it has potential. That's like saying you don't understand the internet but you think email is a good idea.

Buffett has some legendary wisdom out there, but when it comes to Bitcoin and tech in general, he's dead wrong. His track record proves it:

• Criticizes and missed Google

• Criticizes and missed Amazon

• Criticizes and missed Apple then buys AAPL at the top

• Criticizes and misses Bitcoin

• Eats Mcdonald's for breakfast

The bottom line is that you shouldn't listen to Buffett when it comes to Bitcoin. As an out-of-touch billionaire, he has no incentive to understand it.

The Dude is too old to understand tech and too old to understand social change.

Crypto is both.

Bitcoin has been "Greater fool theory" for 10 years

When you purchase Bitcoin, you're either doing it to semi-anonymously buy drugs on the internet or you're 'hoping' you can sell it to someone else later for more money.

This is different from a stock, which gives you the share of a tangible company that makes money.

Or... and here me out, this is going to sound crazy, it could be to shield your wealth from destructive monetary policies and ensure that no one can ever confiscate or exert control over your wealth.

What Bitcoin critics call "Greater Fool Theory" — or the idea that the price will continue to go up as long as there's someone else willing to buy it at a higher price — is a pretty good description of how stocks work.

It's actually how every asset works!

It's called "the greater fool theory" because you're counting on there being someone dumber than you to buy it. Someone who didn't buy into the asset earlier as you did.

That's exactly how stocks and every asset goes up.

The only difference with Bitcoin is that there's a limited supply, so it can't be inflated away as stocks can. And as Arthur Hayes recently pointed out, Bitcoin and Ethereum are creating a new decentralized financial system that is weathering test after test.

Crypto has survived a war, multiple hard forks, a global pandemic, exchanges going insolvent, and now a recession. And Bitcoin and Ethereum are still standing.

Blockchain is Nothing but a Waste of Resources

Blockchain is nothing but a waste of resources and a way for people without jobs to try and get rich. Bitcoin is okay as an alternative currency, beyond that this technology is entirely worthless.

After all, Blockchain is responsible for this:

• The amount of electricity wasted

• The amount of hardware brought up and destroyed

• The number of idiots that got rich and are too lazy to get a real job

• The 40+ petabytes of storage around the globe just holding copies of a pointless ledger

This take, this opinion, is so wrong it's not even worth discussing.

But we'll do it anyway.

All of these criticisms are easily surpassed by the amount of damage centralized finance does.

The amount of electricity wasted by the banking system is orders of magnitude higher than what's needed to secure the Bitcoin network. And that's not even taking into account the environmental cost of mining gold, Bitcoin’s alternative.

Not to mention networks like Ethereum are months away from slashing their energy usage by 99%. As for blockchain, in general, it's like a giant excel spreadsheet with macros (i.e. automatic functions). It will have an increasing number of uses as we move towards a more digital world.

Companies Want Blockchain, They Don't Want Bitcoin

 81 of the top 100 companies in the world are actively adopting blockchain technology. But when it comes to Bitcoin, they're not so hot on it.

Why?

It's simple: They want the blockchain without the Bitcoin. They want the technology without its decentralized, trustless nature of it. They want to be able to control it.

So does this mean the end for BTC? Is Warren Buffett right?

Of course not.

Institutions, otherwise known as 'smart money, is slowly but surely getting involved in Bitcoin. And it isn't just Tesla, Microstrategy, and Square.

It's also Fidelity, MassMutual, SkyBridge, hedge funds like Paradigm, Pantera Capital, and Galaxy Digital, and corporations like Overstock.com, The Motley Fool, and Rakuten. And in April 2021, the European Investment Bank issued a €100m crypto bond using the Ethereum blockchain.

Of course, not all the "smart money" is investing in Bitcoin or Ethereum but as they'll soon find out, centralizing a blockchain makes it prone to hacks, outages, and government intervention.

Now That Bitcoin is Dead, What's the Next Big Thing?

To all the critics, in 2030 when BTC is over 1 Million will you admit that you were wrong or will you revert to calling it a bubble?

Alright, it might not be over a million by then, I hate price predictions, but it will be a lot higher than it is today.

So, what's the next big thing?

There isn't one. Bitcoin and Ethereum are the next big thing. And they're here to stay.

Thanks for reading and have a happy Fourth of July weekend!

Ever since I was a child it was my dream to become a financial advisor. Unfortunately, it never came true. Therefore I am not a financial advisor and you should do your own research and not just listen to random people on the internet. Nothing contained in this publication should be construed as investment advice.