Warren Buffet famously hates Bitcoin and cryptocurrencies and that doesn't seem to have changed since his lunch with Justin Sun.
“they don’t create anything, they can’t mail you a cheque, they can't do anything , what you hope is that someone else will come along and pay you more for it, but then that persons got the problem”
Warren Buffet, 89
In a follow up interview on CNBC yesterday Buffet even denied owning any even though Justin gifted him a Bitcoin at the lunch. His wallet is visible for everyone to see on the blockchain. (Hopefully a lucky intern has picked this up).
Bitcoin
To all intents and purposes Warren is right. Bitcoin doesn’t create anything, it’s not a business and doesn’t create revenue. Now I’m a believer in Bitcoin, there’s a strong case to be made for Bitcoin as digital gold. Bitcoin's decentralisation means it fills a market need that no other assets can. It’s a hedge against bad governments, inflation and the only asset you can easily flee with in times of wars. Whilst it clearly has a unique place in society, by Warren’s investment criteria it's worthless.
Warren is famous for being someone who invests for income and uses the wonders of compound interest to increase his holdings. A quick glance down Coinmarketcap shows that there’s very little that would qualify as a good investment for Warren. There’s plenty of high ideas, bold claims and ambitious venture products but very few coins represent real world products and even fewer offer what Warren looks for: revenue and income.
WINk
Then you get to WINk. Yes it’s a DApp and DApps are supposed to be the future but look closer and this is simply a very successful online casino. WINk has not tried to reinvent the wheel. They’ve built a real world product albeit one that targets the crypto market. The twist with WINk is they share their revenue with their users and their users love it. In 2019 the decentralised gaming platform turned over in excess of $2.8 Billion dollars.
While there may be products and business models in crypto that will truly change the world you can’t argue with taking an existing product and making it better for the end user.
Most companies that Buffet invests in pay out dividends on a quarterly basis. WINk pays out daily. Side by side with traditional casinos the model offered by WINk is simply a better model. When fiat onramps are incorporated to the site later in the year the world outside crypto will get a chance to decide.
In the mean time we have good, old fashioned revenue in an industry that in one form or another has been around for millennia, something that even an 89 year old investor such as Warren should recognise.
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