Warren Buffett is taking more shots at Bitcoin, Goldman Sachs offers its first cash loan backed by Bitcoin, and El Salvador’s Bitcoin wallet puts up bullish numbers that show strong signs of adoption.
Now, if you told me you owned all of the Bitcoin in the world, and you offered it to me for $25, I wouldn’t take it because what would I do with it? I have to sell it back to you one way or another. I mean, maybe I have the same people, but it isn’t going to do anything. After referring to Bitcoin as rat poison five years ago, you would think that Mr. Buffett would have taken his foot out of his mouth by now, but, nope, he’s back at it again. When he originally made that statement back in 2018, Bitcoin was under $10,000. Last year, Bitcoin just came shy of eclipsing the $70,000 mark, and it’s still up over 300% from when he said that. But it’s not going to do anything?
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Despite all the news, all the hype, and despite every celebrity and their brother having a foot in crypto, despite the Crypto.com Arena buying out the Staples Center on a 20-year contract, nope, totally not doing anything at all. Some people just don’t see the light. His 91-year-old line of thinking is apartments make rent, farms make food, etc. So Bitcoin doesn’t produce anything. It’s worthless. Buffett stated, “Whether it goes up or down on the next 5, 10 years, I don’t know, but the one thing I’m pretty sure of is that it doesn’t produce anything. It’s got a magic to it, and people have attached magic to lots of things.” Man, this guy needs to catch up. He couldn’t have it more wrong if he tried. It’s not just him. Charlie Munger, his 98-year-old Vice Chairman at Berkshire Hathaway, calls Bitcoin evil and stupid, and that’s after he wished Bitcoin had never been invented and that the Chinese made the correct decision to ban them.
These guys really need to reel it in. I really hope aging doesn’t make me like that. A grumpy old geezer. The funny part? This is another classic example of “watch what they do, not what they say.” finbold.com reports that Berkshire Hathaway just invested $1 billion into Nubank, the Brazilian bank that is a pro-crypto institution and, via its investments arm, produces things like a Bitcoin ETF. I know if I thought something was evil, stupid and worthless, I sure as heck wouldn’t be investing a billion dollars into it. Nice play, Buffett. Nice play. Before we get into more reasons why you should develop a long-term mindset.
Let’s jump in and do a little market watch here. We got Bitcoin coming in at $38,528. Up about 0.2% for the day Ethereum coming in at $2,857 Up about 1% for the day Let’s go ahead and check our top losers as the top gainers are kind of lackluster. We’ve got CRO down 11% on the day and 31% on the week. As you guys know, they had to significantly lower their rewards. That is why it is currently dumping. Kyber Network down about 10% for the day, 20% on the week. Monero down 6.6% on the day, 22% on the week. And then you got Waves down 6% on the day and 26% on the week. Guys, currently, Bitcoin is sitting at the bottom of that macro bear flag. The question is, can we work our way back up towards the top of that bear flag? Or are we going to see this bear flag break to the downside as they typically do? We’re going to have to let time tell.
Institutional money and adoption
For years and years, we waited for Wall Street and institutions to enter the crypto world, and it’s never been more clear that now the wait is finally over. How do I know this? The institutional money we’ve seen injected into the market throughout the past year or so explains why Bitcoin has been following the SPX chart more closely than ever before. We’re starting to see companies like Fidelity offer Bitcoin in retirement 401(k)s, and now the story is that Goldman Sachs recently made history by offering their first Bitcoin-backed loan just a few days ago. Bitcoin.com reports, a spokesman for the bank explained that the secured lending facility lent cash collateralized by Bitcoin that is owned by the borrower.
She noted further that the deal was interesting to Goldman Sachs because of its structure and 24-hour risk management. It wasn’t long ago that Goldman Sachs was completely against crypto, but now it’s clear they see the opportunity. And this first Bitcoin-backed loan is only going to accelerate Bitcoin further into Wall Street. Goldman Sachs has been tiptoeing into crypto well before they started featuring crypto-friendly articles about the metaverse and digitalization of their website. Now, with this loan and OTC transactions,
it’s clear they’re in the game. They changed their mind to profit off Bitcoin. I wonder if Warren Buffett will change his, why he still plans to profit off Nubank. Why do colossal banking giants like Goldman Sachs believe Bitcoin will eventually reach $100K? Two words. Mass adoption! The entire push behind developing a long-term mindset is stemmed in this argument. This isn’t just based here in America. Bitcoin is a global opportunity, and it’s slowly but surely finding its way into every corner of the world. Last week, we talked about how Brazil is greenlighting crypto and the Central African Republic is going to adopt it as legal tender. Both of these things fell into place since El Salvador led the way by being the first country to adopt Bitcoin as legal tender.
How is El Salvador?
Out of curiosity, how is it going over there with El Salvador and Bitcoin? How it works over there is they use a wallet called Chivo to buy and sell crypto, and the liquidity is backed by the Mexican crypto trading platform Bitso. This article from Cointelegraph points out that 40% of those who downloaded the Chivo wallet have continued using it after receiving government incentives. 20% of all Salvadorans continued use after spending their free $30 bonus.
And you might not think that’s a big number, but 70% of El Salvador’s population is unbanked, so that’s a strong start. In reference to this, Bitso executive Felipe Vallejo stated, “We believe that this is a relatively strong sign of adoption. As education regarding cryptocurrency and everyday use cases increase in the region, more users will remain on the application with a deeper understanding of the tech and the opportunities that it creates.” As the dominoes of countries continue to fall, it’s only a matter of time until Bitcoin is globally accepted. And we don’t need Warren Buffett’s help to get there.
This article is a transcription of a video made by Jamiee Tree
Original video: https://youtu.be/FVP1u8HODq0