On May 3, bitcoin, criticized by Munger and Buffett, didn't fall. Instead, it rose again, trying to break through the $60000 mark again. To be honest, the price of bitcoin is so strong, which is really beyond many people's expectation, but it is also reasonable. Because bitcoin has invested a lot of capital in the process of speculation, it will not withdraw easily without making money. If the price of bitcoin drops now, the capital invested in the early stage will be wasted, which is obviously not in the interest of capital. Of course, it's not known what will happen to bitcoin in the end, whether it's going to run after a harvest or long-term fishing.

However, from the mouth of Warren Buffett and Munger, we can see that neither of them holds bitcoin and criticizes bitcoin as a financial product out of thin air. These two are representatives of value investment, one is called a generation of stock god, the other is called investment master. They are very optimistic about the future of technology stocks, but they don't look at bitcoin. It can be seen that bitcoin's success does not depend on technological innovation. Of course, the views of these two value investment masters are not right. At least bitcoin is designed based on blockchain technology.

The comments of the two value investment masters bitcoin have naturally become one of the hot topics on the Internet. Many people begin to reveal why they hate bitcoin. I looked at the trend of comments on the Internet. There are two points of view raised by netizens, namely bubble theory and interest theory. The mainstream view is that Buffett once said bitcoin was a "tulip bubble". No matter what the ups and downs were, there was no law to speak of it. It was entirely based on the wishes of investors. Bitcoin is a kind of "buck Rogers" phenomenon with speculative nature, which is obviously not in line with the concept of value investment of Warren Buffett.

Another view is that Buffett is worried that the development of bitcoin will threaten their seigniorage income, which I have not found any evidence to verify. Chen Weixing, founder of Pan city capital and fast taxi company, said that the company of Buffett and Munger is one of the biggest beneficiaries of seigniorage in the world. Although we do not know who is the biggest beneficiary of US dollar seigniorage, the rise of bitcoin will indeed have an impact on US dollar seigniorage. You know, Seigniorage on US dollars is a huge income, and it is also one of the tools to collect wool in the United States.

As two legendary value investors, Munger and Buffett don't look at bitcoin. I think the main reason is that they don't look at the future of bitcoin. Bitcoin is more like a financial tool hyped out of thin air than a real technological innovation. It does not conform to the value investment philosophy of Munger and Buffett.

(2021-5-5)