Warren Buffett’s right-hand man called bitcoin ‘rat poison’ to protect casual investors from crypto losses, veteran investor Guy Spier says

Charlie Munger, Warren Buffett’s business associate, called bitcoin ‘rat poison’. Guy Spier is a value investor who was one of the pair’s students. stated in a podcast that Charlie Munger a href=”https://www.youtube.com/watch?v=nisSTAp91-Y”> branded bitcoin as ‘rat poison’ in 2013.

Spier stated that many people approach the crypto world in a not very intelligent way. He is probably right to say that people are more likely to lose money than to make a fortune on a hill.

Spier likened the crypto space with a poker room. The smartest crypto investors are poker players who maximise their chances of success by playing at the right tables.

“Maybe there are only 1% of those tables worth playing at, but I know people who are very likely to find their places,” he stated. He also said that Munger doesn’t advise elite investors to avoid Bitcoin at all costs.

Spier, who manages the Aquamarine fund, partnered up with Mohnish Pabrai, an investor, to place the winning bid for Buffett’s 2008 charity lunch. Spier tried initially to replicate the Berkshire Hathaway CEO’s approach to investing and living, but he soon realized it was not necessary and focused on creating his own style.

“We are not going to be good investors eating peanut brittle, drinking Coca-Colas, or Cherry Cokes all the time, even though that’s fun,” Spier stated. He was referring to Buffett’s love for See’s Candy and sodas.

Spier recalls a high-ranking investor promoting Apple to him at one of Berkshire’s annual meetings in mid-2000s. Aquamarine boss Spier dismissed the stock tip, saying that Buffett was averse to tech stocks. Berkshire, however, built a stake at Apple a decade later and has more than quadrupled the amount it bet on the bet.

Spier also highlighted the difficulty in identifying the best investments, since they aren’t popular almost by definition. Spier said that while the next generation might appear expensive to the untrained eye but those who do their research will find they are actually quite affordable.

Spier stated, “If you only look at the S&P 500 leaders, you’re already missing the boat.”

A recap of 2021 tells us this about Bitcoin’s price trajectory

Over 8% losses were recorded over the three-day period following the king coin’s 6-day recovery of 10% during the festive season. A high year-end close seemed impossible considering Bitcoin was trading at $46,750 as of the time this article was written. However, certain things have changed in this volatile year for BTC.

NYE plans for a wait

The overall retail sentiment appears to have dropped in the last few weeks as price testing has taken place at the lower bounds. This is likely due to the fact that the year’s end will be marked. Social sentiment remains low, which is usually a good sign of an asset. It aids steady price growth because people are disenchanted and still in disbelief.

BTC is currently undervalued, as both the 30-day and 7-day MVRVs suffered major losses. There is some hope for BTC if there is a short-term rebound in the same.

MVRV for the 365 days had also fallen into the negative zone. A BTC drop to $40K would be a justifiable move in terms of MVRV. There was still potential for growth.

The market is seeing younger coins, which suggests that the shake-offs have not had an impact on the more experienced and older hands. The average age of BTC spent is actually declining.

Bitcoin’s Network Profit Loss has some dips, while Exchange Inflows shows spikes in price drops. This could indicate that people are ‘panicking’ at the crash. As the sell-offs gain control, this further flushes out weak hands.

This could also indicate that participants may be fixing their profits for the year to maximize tax savings. People selling on dips are generally bearish because they believe that the price will fall in the near future.

So, what’s next?

In 2021, institutions entered the crypto market on a greater scale. This was largely due to Covid-19’s inflation hedge. BTC was seen as an inflation hedge, and as a store-of-value as it still offered over +62.56% annual returns.

The downtrend in whale entities is a worrying sign. Addresses with 100-10,000 coins were able to offload a significant amount of money. This made the market more skeptical about any moves.

With Bitcoin’s circulation falling each week since November, the number of Bitcoins being used on the network is also declining. If the NVT ratio begins to turn red, it could indicate a BTC drop towards $42K.

Despite the recent drop, the market is not buy or sell at the moment. It is HODL which allows for varying prices in the near future. Retail newcomers could enter the market if ATH reaches the threshold and triggers FOMO in 2017. For now, however, BTC’s current price movement could be continued.

Stablecoin Flippening: UST Becomes the Biggest Decentralized Stablecoin By Market Cap

UST, one stablecoin derived from Terra, has taken the DAI spot as the most valued project of its type by market capital. This marks the end of a year of growth in the Terra ecosystem as well as UST. UST’s market capitalization grew from $182 million at 2021 to $9 billion by December.

UST now holds the fourth spot in the stablecoin market, just behind USDT and USDC. These are all centralized stablecoins. These stablecoins work by depositing collateral in order to back tokens in the marketplace. However, UST is an algorithmic stabilitycoin that uses another token from the Terra ecosystem (LUNA), to balance its peg to the U.S. dollars’ value.

Other Decentralized Stablecoins, LUNA and Others Also Grew

Other decentralized stablecoins also saw a rise in market cap over the past 30 days. Frax and MIM have seen a more than 30% increase in market cap, while FRAX has reached a 40% market cap. These tokens are not dependent on a centralized point for issuance and can’t be blocked by any central authority.

Some believe that stablecoins such as USDT or USDC will see more attention from regulators. This is because users are flocking to these alternative stablecoins for many reasons. USDT remains the most popular stablecoin, changing hands for more than $68 million yesterday.

The price of LUNA (its sibling token) has seen its value rise as well, owing to UST’s popularity. Users in Terra protocol must burn LUNA to make UST. This makes the token less common. The price of LUNA rose from $0.64 in January to $80 today, a 125x increase in less than a calendar year.

Do Kwon is the founder and CEO at Terraform Labs. He has declared he proposes to create a backup for UST using bitcoin ( Bitcoin) or other cryptocurrencies through the token governance method. This will help to protect the peg from volatility in stressful market times.

India to Impose Ban on Crypto Payments, Deadline for Declaring Crypto Assets, KYC Rules: Report

A cryptocurrency bill is awaiting to be voted in India’s parliament. There are many reports about what the bill contains, but the government has not made them public.

Although crypto assets are reportedly being regulated, the Indian government plans to ban cryptocurrency payments, Reuters reported Tuesday. Citing an unnamed source, Reuters also provided a summary of the bill that it had seen.

The rules would be “cognizable” according to the proposed legislation. The bill’s summary stated that violators could be held without bail and arrested without warrant.

The Indian government plans to prohibit all individuals from mining, generating and selling digital currencies. This is to prevent them from being used as a “medium of exchange”, store of value, or unit of account.”

Although cryptocurrency will not be recognized as legal tender in India like it is in El Salvador , the proposed legislation will allow it to be.

Sources suggest that self-custodial wallets may be banned. The CEO of an Indian cryptocurrency exchange explained that this could prove difficult. He described his expectations in regard to self-custodial wallets, and the new crypto legislation.

Bloomberg reported Tuesday that the Indian government plans to give investors a deadline for declaring their cryptocurrencies and complying with new rules.

The Economic Times reported Wednesday, that crypto exchanges will be required to share know-your-customer data (KYC), with regulators and government agencies including the Securities and Exchange Board of India, the Reserve Bank of India, and the Income Tax department.

According to the news outlet, the crypto bill will require a uniform KYC process across all crypto exchanges. This is in addition to existing procedures that each exchange platform follows.

The government plans to include cryptocurrency in Section 26A of Income Tax Act. This will require taxpayers to disclose their cryptocurrency investments in India and abroad.

NDTV reported last week that it had seen the cabinet note naming SEBI as the regulator responsible for crypto activities in India. Nirmala Sitharaman , Indian Finance Minister, confirmed last Wednesday that the crypto bill was reworked. The original version of the bill seeks to ban all cryptocurrency, including bitcoin and Ethereum. She also answered many parliamentary questions about the proposed cryptocurrency regulation.

Hillary Clinton Warns Cryptocurrency Could Destabilize Nations, Undermine Dollar as World’s Reserve Currency

Hillary Clinton, former Democratic presidential candidate, spoke about cryptocurrency Friday at a panel discussion at Bloomberg New Economy Forum in Singapore.

Clinton addressed a variety of new challenges including artificial intelligence (AI) and disinformation. However, Clinton stated that ‘one more area I hope nation-states begin paying greater attention is the rise in cryptocurrency.

The former Secretary to State also added:

It seems like an interesting and exotic endeavor to literally mine coins to trade with them. This could lead to the undermining of currencies, the loss of the role the dollar has as the reserve currency, and the destabilization nations.

Clinton isn’t the only one who sees that cryptocurrency’s popularity could be a problem for the U.S. dollar. Trump, the former President, has stated several times that he doesn’t like cryptocurrency because it competes with the U.S. Dollar. He stated that he didn’t want other currencies to hurt or devalue the dollar.

Global investment bank Goldman Sachs warned in July that ‘Real concerns about the durability of the U.S. Dollar as a reserve currency are starting to emerge’

Stanley Druckenmiller , legendary fund manager, saidin May that he was worried that within 15 years, he would lose his reserve currency status. This is in addition to all the incredible benefits that it has brought.

Some people think that crypto will not replace USD as the world’s reserve money. Mohamed El-Erian is chief economic advisor to financial services company Allianz. He stated this week crypto “will always exist within the ecosystem, but it’s never going to be a worldwide currency. It won’t replace the dollar.