Warren Buffett recently said this about Bitcoin “Whether it goes up or down in the next year, or five or 10 years, I don’t know. But the one thing I’m pretty sure of is that it doesn’t produce anything,” Buffett also said. “It’s got a magic to it and people have attached magic to lots of things.” He is wrong on so many levels and that is why crypto will change the world once people understand the unlimited possibilities.

Bitcoin and crypto currency at the most simplistic level are a secure store of value. Even at that base level it "produces something". It produces a secure way to maintain funds that is better than a bank. Your funds are locked on a decentralized blockchain. It produces the ability to transfer funds quickly and cheaply anywhere in the world. It produces peer to peer transactions and exchanges that ensure both parties receive the agreed upon amount. Based on Warren Buffett's view Berkshire Hathaway doesn't " produce anything". 

Traditional investors need to view crypto currency more like tech stocks and less like digital gold. To do that they will need to grasp a few concepts. First, decentralized blockchain protocol insures that whatever happens on the blockchain stays on the blockchain. This insures that your crypto can't be erased. Second, smart contracts on the blockchain do the work that has traditionally been done by many humans. Smart contracts set in place rules that must be followed like a traditional contract, but unlike humans smart contracts don't make mistakes, never sleep, and don't have to be paid. Once the smart contracts are in place and are on the blockchain they will continue to operate forever. 

We are only starting to see the possibilities of crypto. Smart Investors understand the unlimited possibilities of crypto. The real question for smart investors is which projects and use cases hold the most promise.