Our weekly editorial brought to you by a Coinme team member.
This week: Dom Garrett, Director of Engagement
Bitcoin is dead.
At least that is what it’s critics want you to believe. As 2018 comes to a close, almost every digital currency skeptic has stepped in front of a camera or a keyboard to proclaim that Bitcoin is in its final days. The “I told you so’s” are flowing. Everyone — from Jamie Dimon to Warren Buffet — is testing the limits of their shoulder flexibility by patting themselves on the back.
One thing we all need to understand is that those two gentlemen (and many others like them) have made money for years betting on “winning” technology and ideas. For example, CNBC reported that Buffett’s Berkshire Hathaway had a new stake worth $4B in Dimon’s J.P. Morgan as of the end of September. Not only is Buffett big on J.P., but HALF of Berkshire Hathaway’s top 10 holdings are in traditional US banking companies. No surprise he wants Bitcoin to go away; he made an $86B bet on the other team.
The price of all digital currencies have dropped from the highs of last year; no one is debating that fact. However, there is one point that even the “Oracle of Omaha” fails to bring up: Bitcoin has outperformed any other asset class throughout the last ten years overall. It has performed better than the S&P, DOW, NASDAQ and others. Even with the most recent market correction, an investment in Bitcoin would have secured over 270% ROI throughout the last five years. Investing is not about short-term hype, it is about long-term economics.
Mr. Buffet himself famously said, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.” Bitcoin has passed that test over the last ten years. Why should we doubt it now?
This originally appeared in Coinme’s weekly newsletter: The Coinster.