May 29, 2025
Over 35,000 people are gathering to attend a cryptocurrency convention this weekend to celebrate the introduction of this asset class to the world of real money, cheered on by the Trump Administration. Led by Vice President J.D. Vance and cryptobillionaire and Commerce Secretary Howard Lutnick, the crypto promoters appear to be a gathering super storm as they slash past the economic cautionary signs offered by traditional economists who still see crypto as a potential Ponzi scheme.
Now that the Crypto Mania has President Trump creating his own cryptocurrency and making millions off of his Truth Social Website and loading up the SEC and other regulators with supporters who see only crypto prices going to the Moon.
I have missed the rocket ride, which has made some early investors very wealthy, but I still have my reservations about that asset class.
My caution stems from the question that if Bitcoin was such a great investment alternative, why haven’t those two wise investors, Warren Buffett and his partner, Charlie Munger, (recently deceased), embraced it?
Of course, lesson one in investing is don’t stand in front of a steamroller. So I would strongly recommend that everyone consult their professional advisors before making any investment decisions about cryptocurrencies.
I would note that along with all the positive talk about the United States creating a Bitcoin reserve, and that Uncle Sam can then use those Bitcoins it buys today, to pay off the National Debt in 10 years, as Bitcoin goes up in price and the Dollar declines in value.
Is there a possibility someone with quantum computing capability might find a way to produce counterfeit cryptocurrencies, or some way to unlock a person’s cryptocurrency account or wallet?
For reference, I asked Google, what Warren Buffett and Charlie Munger, two outstanding money managers, might say about Bitcoin, and other Cryptocurrencies:
Here is what they said:
The stock price for Microstrategy (MSTR) a leading proponent of selling a Company’s corporate bonds and stocks to use the funds generated to buy more Bitcoin, seems to have had a lower top price this month than the record high it made a few months ago, although Bitcoin made a record high price last week
Just a temporary mismatch, or a warning sign? Just asking?