Seth Klarman Compares Bitcoin to Trading Sardines

In his recent letter to Baupost Group investors, Seth Klarman compared bitcoin investing to the allegory of the sardine trader. To wit, he wrote:

“There is the old story about the market craze in sardine trading when the sardines disappeared from their traditional waters in Monterey, California. The commodity traders bid them up and the price of a can of sardines soared. One day a buyer decided to treat himself to an expensive meal and actually opened a can and started eating. He immediately became ill and told the seller the sardines were no good. The seller said, ‘You don’t understand. These are not eating sardines, they are trading sardines.’

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