All money is just a token of energy exchange; it has no intrinsic value.
Bitcoin has become infinity money, where rising value is based on the belief that it will go on forever, and the percentage increases week on week represent actual cash.
This is what Buffett sees as obvious. Gains are short term, value is supported by fresh money being added at the base of the Ponzi pyramid.
Those who ‘know’ it isn’t a Ponzi scheme are keeping their bitcoins safe, and buying more.
All money is just a token of energy exchange; it has no intrinsic value. If my home is worth $200,000, (in a “$200,000” area) and I try to sell it fot $1,000,000. it will remain unsold because it does not represent the correct energy value. I cannot physically move my house to a more upmarket area to increase its value.
I cannot increase the value of my house just by thinking it to be. Which is the basis of bitcoin.
Whether currency is in gold, silver, paper money, plastic card or barter is an irrelevance; it can only be a token of the energy within the goods and services being traded.
With bitcoin systems, no goods are being exchanged or traded.
Money cannot have value unless it is backed up by energy.
The sustainability of any bitcoin scheme is that sufficient monies must be paid in at the bottom tiers, and kept there to enable those at the top to get out early with a hefty profit. If everyone bails at once, the result is panic; all worth evaporates and the pyramid collapses.
Thus the bitcoin system can only sustain itself with hoarders. And those hoarders must be incentivised in their hoarding by ever rising values. So they buy more, convinced that it is a sure bet for infinite wealth.
Those who invest in Ponzi schemes can never admit to doing so, because that would invite ridicule. Instead, it is hailed as a revolutionary technology.