At the end of April, Yahoo Finance published an interview with Warren Buffett, in which the known investment master blasted bitcoin. The Oracle of Omaha set himself clear about the digital coin that caused the rage all over the world, saying it is not an investment due to the lack of intrinsic value in it.
Later several crypto-enthusiasts tried to defend the “big Daddy” BTC. Among the defenders appeared to be the co-founder of Union Square Capital Fred Wilson, who also is a venture capitalist. He, in his turn, proved Buffett wrong claiming bitcoin does have value and its value is in the fact that it is helping to build the blockchain net, which will be the new Internet.
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Now it’s the ‘disciple’ of Warren Buffett who decided to enter the definition-conflict. Chamath Palihapitiya also joined the camp of bitcoin-friendly business people, disagreeing with old-school views of Buffett.
Even Warren’s Disciple’s On Bitcoin’s Side
Chamath Palihapitiya is a known venture capitalist, who focuses on emerging technologies, as well as the ‘disciple” of a billionaire Buffett, as he calls himself. In a conversation with CNBC journalist this Wednesday, May 9, Palihapitiya unveiled he does not agree with his guru.
In particular, he admitted Buffett is wrong concerning BTC.
"Not everybody is right all the time," said Palihapitiya.
Once Palihapitiya was Facebook’s exec, so he does have a point when it comes to technologies. In the interview, he also vaguely hinted that the knowledge of technologies is not within the purview of Berkshire Hathaway’s CEO. He said it is not his "circle of competence," and that is why Buffett’s wrong.
Beyond the Realm Of Bitcoin
Interestingly, this week the chairman of Berkshire Hathaway reiterated his thoughts concerning bitcoin on CNBC. Buffett emphasized that bitcoin doesn’t produce anything apart from speculation. According to his words, the price of BTC grows only because people who have already bought some units of it expect other people buy it for more and gain earnings when they vend them to new buyers.
Also, Buffett compared bitcoin to a “rat poison squared,” with which he grabbed the attention of media.
However, Buffett is not the only wealthy person and influential investor who criticizes the crypto-rage. On the same day, the second richest person in the world Bill Gates, as well as Berkshire Vice Chairman Charlie Munger, also slammed bitcoin.
Palihapitiya Doesn’t Agree
The venture investor, who calls himself Buffett’s disciple, says that, in his opinion, bitcoin can be a substitute for gold.
"Something like bitcoin is really important because it is not correlated to the rest of the market," said he.
Palihapitiya also said that it seems to him that he might need a passport to course between the real world and the realm of cryptos. As a whole, that feels like being "in two different universes.”
The investor considers himself a person who sees bitcoin as a barrier to the "traditional financial infrastructure." He said it’s all people who have been piling their funds in BTC since 2012 who think so too.
He also recalled the times when the traditional financial system cracked down, meaning the 2008 crisis.
"Everything broke down [and] … things that we thought were hedges went away," concluded Palihapitiya.
