Posted 2 weeks ago | by Catoshi Nakamoto
Warren Buffet 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”. My name is Deezy. This is your crypto nightly news wrap up. Let’s get it!
After referring to Bitcoin as “Rat Poison” five years ago, You would think that Mr. Buffet would have taken his foot out of mouth by now…but nope, he’s back at it again. When he originally made that statement back in 2018, Bitcoin was around $9,500 dollars. Last year, Bitcoin just came shy of eclipsing the $70,000 dollar mark and it’s still up over 300% from when he said that now…but it’s not going to do ANYTHING? Give me a break. Despite all the news, all the hype…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 since Bitcoin doesn’t produce anything, it’s worthless. Buffet stated, “Whether it goes up or down un the next year, five or 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 catch up, he couldn’t have it more wrong if he tried. It’s not just him, Charlie Munger, Buffets 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 need to reel it in; I really hope aging doesn’t make me THAT grumpy, geez. 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 is a pro-crypto institution that, via its investment arm, provides products such as the 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 Buffet, nice play. Before we get into more reasons why you should develop a long term mind set, lets pass it over to Frankie Candles for a market watch!
For years and years we waited for Wall Street and institutions to enter the crypto world, it’s never been more clear that the wait is 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 closer than ever before. We’re starting to see companies like Fidelity offer Bitcoin in retirement 401ks, 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 spokeswoman 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 tip-toeing into crypto well before they started featuring crypto friendly articles about the metaverse and digitalization on 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 Buffer will change his…while 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 buy surly 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 a legal tender. Both of these things fell into place since El Salvador lead the way by being the first country to adopt Bitcoin as a legal tender. 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 Coin Telegraph points out that “40% of those who downloaded the Chivo wallet have continued using it after receiving government incentives. 20% of all Salvadorians continued use after spending their free $30 dollar 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 a relatively strong sign of adoption. As education regarding crypto currency and everyday use cases increase in the region, more users will remain on the application with a deeper understanding of the technology and the opportunities that it creates.” As the dominos of countries continue to fall, it’s only a matter of time until Bitcoin is globally accepted, and we don’t need Warren Buffet’s help to get there.
That’s all I got. Be Blessed. Deezy out.