He could buy all the BTC?

The Oracle of Oklahoma, better known as Warren Buffet is a living legend in the investment area. Buffet keeps with his holding company Berkshire Hathaway is a major shareholder of worldwide well-known companies such as American Express, Coca-Cola, IBM or Walmart. This Buffet followed a more conservative investment approach. Of crypto-currencies like Bitcoin, he maintains a distance.A stir has now taken care of a Tweet from Anthony Pompliano. This Pompliano indicates the enormous cash reserves of Warren Buffet. This will amount to approximately $ 137 billion. This Pompliano said that Buffet could almost buy all the Bitcoin. This statement is really true?

Bitcoin and Warren Buffet: opposites attract?

Anyone who regularly reads our articles knows of the relationship of the investors legend to Bitcoin. The Buffet is a skeptic of the crypto-currency. He sees in BTC with no real assets of value, since the intrinsic value is missing. Also an extremely expensive dinner with the TRON-founder, Justin Sun, and other luminaries from the crypto area were not able to change the Buffet in its setting.Now we come to Anthony Pompliano, and Changpeng Zhao. The former is especially known as a Co-Founder of Morgan Creek Digital, as well as his daily analyses on the financial market. This Pomp tweet “” be happy to, and often on the topic of Bitcoin, crypto currencies and co. Changpeng Zhao is as Binance founder, of course, well known.Pompliano said in a recent Tweet about the high level of liquidity by Warren Buffet, which amounts to around 137 billion U.S. dollars. This Pompliano said that this was sufficient to purchase nearly all the outstanding BTC. First of all: This is, of course, extremely unrealistic, since the Buffet would not invest in Bitcoin. On the other hand, however, it illustrates an interesting thought:you Can buy a single Person, provided that it has sufficient liquidity, in fact, all the BTC?Trade on the worlds leading Social Trading platform!Join the millions of people who have already discovered how it smarter to invest by copying the best investors in our Community, or be copied and as a result, a second income can be achieved. Start now!

All the BTC at once to buy? – Is it possible?

Now let’s look at the original tweet from Anthony Pompliano, and the associated response of the Binance CEO Changpeng Zhao in more detail.This is the question asked whether one Person could really buy up all the BTC?

The shortest answer to the above question is clearly “no”! – The answer to run a little more, we need to lead us again what CZ says exactly and how Exchanges work. And this is what we do now!

Bitcoin exchanges, and the principle of Order Books

We begin with the concept of a Exchange and of the functioning of the Order Book (dt. Order books). The basic principle of a stock market is buyers and sellers as efficiently as possible together. Thus, the concept of order books is connected. Both buyer and seller can specify with the help of a stock exchange, what amount of Bitcoin you want to buy at a desired price, or to sell. This is reflected in the Orderbook.It is vital to understand that only the quantity can be traded on Bitcoin, which is provided by the seller side. It follows directly that Warren Buffet could never buy all the in circulation Bitcoin at once. This is due to the fact that many BTC are not held on Exchanges and are therefore not ‘free’ to stand. Because – as already said – has to find a buyer is always a willing seller.Added to this comes the effect that in the case of such a massive Order, the price of Bitcoin in astronomical heights would not shoot, because the available supply is Far from sufficient.

Warren Buffet is not the Whale

CZ summarizes these two aspects in his above Tweet well. He says that the Buffet could buy all the Bitcoin, if any (!) HODLer would sell his BTC and secondly, he could buy only a certain quantity of Bitcoin and then only at a very high price.Thus, we can say that the statement by Anthony Pompliano is unfounded. Buffet could not upgrade even if he wanted to – just for Bitcoin Whale.62 % of private CFD accounts lose money. No EU investor protection.(Image source: Shutterstock)The versions in this article, no trade recommendations or investment advice.

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