Welcome to our crypto sermon, on this fine spring day. All are welcome.
If you’re joining us for the first time, we’re thankful you could join us. Please greet your neighbors as you find a seat.
May has started off strong for most cryptocurrencies, but we are paying closer attention to blockchain projects which are launching product; not just marketing and reiterating their white papers.
Before we begin another sermon, we must tell you, what we state within these (internet) walls is for entertainment purposes only. We never offer financial advice of any kind. The cryptocurrency gospel we’ll share is from our own eyes, and we are not financial advisors. Do your own due diligence and research before your next steps.
Buffet and Munger Believe Not, in Cryptocurrency
This past Saturday, the annual Berkshire Hathaway meeting took place in Omaha, Nebraska (our western neighbors).
There has not been a moment yet where Buffet and Munger have expressed positive thoughts toward cryptocurrency, and it sounds as if they’re even more bearish than before.
Buffet stated that Bitcoin, “is probably rat poison squared.”
Munger, while answering a question from the audience, stated “it’s like somebody else is trading turds, and you decide you can’t be left out.”
We won’t argue that Buffet and Munger are successful in their own right, but we want to leave you with 2 facts to ponder.
The first is the fact that Munger wanted regulators to let up on Wells Fargo, after they committed fraud. As one example of their fraud, Wells Fargo employees were ordering credit cards for their customers, without their consent.
The second fact is that Buffet has not invested in tech companies because he “doesn’t understand their business models.” He missed investing in Google and Amazon in their earlier days. He admitted his mistakes.
Will he admit his mistakes in the blockchain space? We see a similar story unfolding…
Beware the Tweets
With Twitter granting open conversation between thought leaders and the masses, there are more opportunities for scammers to prey upon the naive.
One of those areas are cryptocurrency giveaways. Take a moment to go to Twitter and find recent Tweets from an influencer, thought leader, or a larger blockchain project account.
Now look at the replies around their Tweets. Notice anything interesting?
Scammers are replicating the account photos, sneaking in similar characters into their account name, and offering “giveaways” for anyone who sends a portion of crypto to the listed address.
Example: @Vertcoin is an authentic account, but a @Vertc0in account, with the exact profile image, will instantly be replying to all of @Vertcoin’s Tweets, offering a giveaway.
While we have witnessed Twitter crack down on scammer accounts, the problem seems to be out of hand at the moment.
The easiest way to avoid the scams is to realize there are no giveaways; especially on Twitter.
Is Ethereum a Security?
One year ago, ETH was right at $80. At the time of this sermon, we see it sitting close to $800—still the second largest cryptocurrency in circulation.
You may not know Ethereum has been around since 2014, and now regulators are deciding on whether or not the tokens should be classified as a security.
If ETH is considered a security, cryptocurrency exchanges would likely need to comply almost immediately with the SEC on the token. This would slow short-term progress, but it’s hard to say if it would benefit the cryptocurrency space long term.
Changes in regulation would affect ICOs, as most utilize the ERC20 token built using the Ethereum blockchain, and it could mean population control in ventures such as Crypto Kitties.
Please, don’t hurt the kitties.