International Banks, Buffet and Dealing with Novelty
May 01 2018 - 12:48PM
ADVFN Crypto NewsWire
Bitcoin Global News (BGN)
May 01, 2018 -- ADVFN Crypto NewsWire -- Growing interest from
investors is reaching the tipping point, but banks are scrambling
to fit digital currencies into the established boxes. But in a
recent interview, Warren Buffet calls
buying cryptocurrencies “gambling,” and on bitcoin: “nobody knows
exactly what it is.” He seems completely right by looking at what
American financial governing bodies have done in the past five
years:
-
Currency -
2013 - FinCEN
-
Property -
2014 - IRS
-
Commodity -
2015 - CFTC
-
Security -
2017 - SEC
Cryptocurrencies are an entirely new financial
game. The pieces don’t
fit in the game these institutions know. So yes, Warren Buffet is
correct in his world. Headlines are claiming massive interested
from Big Banks to nail down regulations and get these new pieces on
their board. An “insider” from JP Morgan is quoted:
Truth be told this is the next arms
race. Everyone is rushing into cryptos. Everyone. There isn’t a
bank, a fund, a fund company, a former legend attempting to reclaim
old glory, private equity, venture capital, lending, exchanges,
consulting firms – everybody. It is the digital gold rush. And our
firm wants to get there and pull as many levers as we
can.
This is happening around the world.
A leading Japanese financial group SBI
Holdingsis working hard on launching a cryptocurrency
exchange, but getting the regulatory system and security in place
is slowing them down. The group also holds 25% stake
in Bank Negara
Indonesia - a state-owned Indonesian bank, which
may help bridge the gap toward establishing regulations.
Buffett Buys the
Farm
If you buy something like a farm,
an apartment house, or an interest in a business… You can do that
on a private basis… And it’s a perfectly satisfactory investment.
You look at the investment itself to deliver the return to you.
Now, if you buy something like bitcoin or some cryptocurrency, you
don’t really have anything that has produced anything. You’re just
hoping the next guy pays more.
Farms are probably as foreign to
Millennials as Bitcoin is to Buffett, and most don’t have the money
to buy a farm or apartment house outright. Proof-of-Stake produces
returns similar to dividends by holding the the cryptocurrency.
Others lower the barrier of entry to investments with methods like
tokenization, such as Blocksquare is doing with
real estate.
By: BGN Editorial Staff
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