[2018-05-18] Warren Buffett Is Wrong About Bitcoin, Fred Wilson Says

[ivanpoldark]

Legendary venture capitalist Fred Wilson has issued an open response to Warren Buffet’s recent claim that bitcoin is equivalent to “rat poison squared” is fundamentally flawed. The American investing tycoon, Wilson said, has not done his research.

Why Bitcoin Has Value

Speaking at the Consensus 2018 conference in New York City, Wilson said that the true value of the bitcoin ecosystem would accrue to the protocol itself and not the businesses that build on top if it. He stated that Buffett hasn’t “taken the time to really understand what’s going on here” before saying that his firm, Union Square Ventures, is making highly speculative bets but that it would “all work out”.

Wilson, whose funds hold investments in web 2.0 businesses like Twitter, Tumblr, and Kickstarter, did caution that some of the current valuations of existing tokens are inflated. He went on to say that they will not represent a good deal even years from now.

Wilson went on to say that he thought governments would attempt to control cryptocurrency and would enjoy some success, but said that they wouldn’t be able to undo the work that has already been done, likening it to trying to “put the genie back in the bottle”.

Fred Wilson’s Open Letter to Warren Buffett

Wilson was responding to billionaire Buffett’s recent comments, made during the Berkshire Hathaway annual shareholder meeting at the beginning of the month, when he described bitcoin as being “rat poison squared” and said that bitcoin “is creating nothing”.

His comments drew a lot of criticism, not only from blockchain entrepreneurs but from respected businessmen and venture capitalists like Wilson himself. However, those opinions are shared, at least to some extent, by the likes of Bill Gates and most major banks.

Following the meeting, Wilson posted an open letter on his AVC blog, and he repeated his comments when speaking during the annual Consensus conference this week. He stated that Buffett dislikes bitcoin because of the lack of cash flow for the underlying networks. He hinted that Buffett’s investment style is that of investing in businesses, and because bitcoin is decentralized there is no underlying business in which Buffett can invest. That, Wilson posits, is why Buffett has been put off by the idea.

Wilson did temper his comments with some words of caution, saying that he expected governments to have some success in rationalizing and, ultimately, regulating the industry but said that the ICO market is half-way to a new capital market.

https://www.ccn.com/why-warren-buffett-is-wrong-on-bitcoin-according-to-legendary-vc-fred-wilson/

[davis196]

"Bitcoin is creating nothing" HAHA,what an idiot.
Bitcoin isn`t crating anything,because it isn`t a corporation or non-profit organization,it`s a currency.
Is USD creating anything?NO,because ,it`s currency.
Warren Buffet only cares about "brick and mortar" businesses.He can`t understand how Google and Facebook work.I`m not surprised that he can`t understand bitcoin.

[1Referee]

"Bitcoin is creating nothing" HAHA,what an idiot.
Bitcoin isn`t crating anything,because it isn`t a corporation or non-profit organization,it`s a currency.

Actually, Bitcoin IS creating additional income. It's called the fork hype mania that allows us to liquidate utter garbage for more Bitcoins. It allows allows me to largely cover my due taxes with them as well. Keep the forks coming, and I'll happily turn garbage into Gold.

Is USD creating anything?NO,because ,it`s currency.

Yes. It creates debt, loss of wealth, in other words, only problems.

These oldies are addicted to dividend stocks for a reason, because they control the majority of the circulating shares, and thus they don't really have to worry about a plummeting market. Control the majority of the supply and you control the market, especially when your fellow institutions do what you say. It's free money for them. It's like being a billionaire made easy; money makes money, that's how it has always been.

[RodeoX]

Why do so many people listen to a guy with no knowledge about bitcoin?  I have heard him say it's risky because "This Satoshi guy could have hidden something in it". Utter foolishness if you understand open source.

[Mezze]

Wilson was responding to billionaire Buffett’s recent comments, made during the Berkshire Hathaway annual shareholder meeting at the beginning of the month, when he described bitcoin as being “rat poison squared” and said that bitcoin “is creating nothing”.

Nothing he says?
What about jobs for people at Intel and AMD making all of that gpus? 
What about an electricity distribution companies etc.? Haha
What about all that heart attacks from bad ICO's and wasted money on alts? New jobs for MD's right there. 

[Slow death]

Why do so many people listen to a guy with no knowledge about bitcoin?

I think it's because of this:

https://en.wikipedia.org/wiki/Warren_Buffett

Warren Edward Buffett (/ˈbʌfɪt/; born August 30, 1930) is an American business magnate, investor, and philanthropist who serves as the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of US$82.9 billion as of February 17, 2018, making him the third wealthiest person in the world.

The guy is very rich and it seems that he is a great investor then the media look at him like he is a god and forget that he knows nothing about bitcoin. in this world have a lot of money you become a god, even if you speak the biggest bullshit, nobody corrects you

I have heard him say it's risky because "This Satoshi guy could have hidden something in it". Utter foolishness if you understand open source.

the guy do not want to do research before commenting about bitcoin and when he talks bullshit nobody corrects him because he is considered one of the most successful investors, so to media everything he says is supposed to be correct

[richardsNY]

Why do so many people listen to a guy with no knowledge about bitcoin?  I have heard him say it's risky because "This Satoshi guy could have hidden something in it". Utter foolishness if you understand open source.

It's ok. He's just trolling everyone. If he was really of believe that Bitcoin was everything he say it is, then he would have prevented Goldman Sachs from doing anything related to Bitcoin. Wall Street is too late to join the party, so they have to find another way to get in without paying the crazy prices people paid for their Bitcoins during the bull run. JPMorgan did it as well, and look where they are right now. They have never been shy of dirty play when it comes to taking over certain markets, and Bitcoin gets the exact same treatment. All this trash talk is music to my ears, because it perfectly shows how desperate they are.

[darkangel11]

Why do so many people listen to a guy with no knowledge about bitcoin?  I have heard him say it's risky because "This Satoshi guy could have hidden something in it". Utter foolishness if you understand open source.

It's actually funny how an investor that made his money mostly on the real estate market suddenly started giving advice about the economy of the Internet and the value of tokens used in the web. I bet that Warren doesn't even read the news in the Internet and doesn't watch youtube or read any forums. He buys a newspaper and watches TV, those are the only media that influence his thinking. If you asked him what open source is he would say something in like " probably another meaningless computer crap, I have people to deal with virtual reality, I'm a man of real values, like gold and paper money"

[cetald]

It's strange that Buffett has a negative attitude towards bitcoin. He treats gold well. Gold is also very volatile, like bitcoin. Although bitcoin in fact now performs the function of gold - the accumulation of capital.

[vit05]

In less than two years, Fred Wilson will have a greater fortune than Warren Buffett. He was from the beginning one of the biggest promoters of ETH. He is a seed investor for Coinbase, Twitter, Duolingo, DUckDuckGo. Projects that only tend to become global giants. And he is always looking for the next revolutionary project.

[squatter]

It's strange that Buffett has a negative attitude towards bitcoin. He treats gold well. Gold is also very volatile, like bitcoin. Although bitcoin in fact now performs the function of gold - the accumulation of capital.

Actually, Buffett hates gold and doesn't invest in it. It's not about the volatility. He basically just thinks it's useless -- and he's mostly correct about that. Its primary use is money. He likes silver for its industrial and medical uses, though:

Warren Buffett does not invest in gold. He has invested almost $1 billion in silver, so the reason for his aversion to investing in gold is not simply a dislike for precious metals. The explanation for Buffett's dislike of gold and for his enthusiasm about silver stems from Buffett's basic value investing principles.

Warren Buffett has been very vocal about his disdain for gold as an investment. He sees little to no value in gold. What Buffett refers to as a lack of value results from a lack of usefulness. He once stated about gold, "It doesn't do anything but sit there and look at you."

So, Buffett's opinion of Bitcoin is quite similar to his opinion of gold.

These oldies are addicted to dividend stocks for a reason, because they control the majority of the circulating shares, and thus they don't really have to worry about a plummeting market. Control the majority of the supply and you control the market, especially when your fellow institutions do what you say. It's free money for them. It's like being a billionaire made easy; money makes money, that's how it has always been.

Yup, the game is rigged. This reminds me of the Hunt brothers...

[bbc.reporter]

Why do so many people listen to a guy with no knowledge about bitcoin?

I think it's because of this:

https://en.wikipedia.org/wiki/Warren_Buffett

Warren Edward Buffett (/ˈbʌfɪt/; born August 30, 1930) is an American business magnate, investor, and philanthropist who serves as the chairman and CEO of Berkshire Hathaway. He is considered one of the most successful investors in the world and has a net worth of US$82.9 billion as of February 17, 2018, making him the third wealthiest person in the world.

The guy is very rich and it seems that he is a great investor then the media look at him like he is a god and forget that he knows nothing about bitcoin. in this world have a lot of money you become a god, even if you speak the biggest bullshit, nobody corrects you

I have heard him say it's risky because "This Satoshi guy could have hidden something in it". Utter foolishness if you understand open source.

the guy do not want to do research before commenting about bitcoin and when he talks bullshit nobody corrects him because he is considered one of the most successful investors, so to media everything he says is supposed to be correct

Warren Buffet quite knows what bitcoin and the cryptospace are, I reckon. But he has his role to play as the bad guy talking down on them because it is a threat to the very system that he has deep belief in.

Do not underestimate him. He has an army of people doing the research for him.

[Mezze]

the guy do not want to do research before commenting about bitcoin and when he talks bullshit nobody corrects him because he is considered one of the most successful investors, so to media everything he says is supposed to be correct

That's just bad sensationalistic journalism.
They don't ask questions. The goal is to be first to sell the news, not to be correct.
 

[FUD Expert]

Fred is correct, bitcoin just can't get erased and it's the path that we are going to take no matter what they do. Warren Buffet is just a grumpy old men who wants to stay in the old lifestyle where he can remain living like a king.

[Mezze]

Fred is correct, bitcoin just can't get erased and it's the path that we are going to take no matter what they do. Warren Buffet is just a grumpy old men who wants to stay in the old lifestyle where he can remain living like a king.

He's to old to even care about the money anymore.
He'll live like a king even without crypto.

[qwertyup23]

Technically, Warren Buffett is inclined into the traditional way of investing- which primarily revolves around the acquisition of stocks and business ventures in order to increase their influence and sales. Bitcoin, which is decentralized in nature, makes it difficult for them to comprehend the processes and system. That is why, most of his statements are prejudicial to bitcoin's existence as he does not understand on how the blockchain technology works! Funny thing is, people who also do not know the background of bitcoin tend to be influenced by these statements and they start this revolution against cryptocurrencies.

Fred is correct, bitcoin just can't get erased and it's the path that we are going to take no matter what they do. Warren Buffet is just a grumpy old men who wants to stay in the old lifestyle where he can remain living like a king.

Interesting. I might even consider that the statements that he made are actually part of his scheme. The whole thing might be an act and I even consider the possibility that he already invested into some cryptocurrencies in the market, which explains on why some coins suddenly increase on their supply.

[Hamphser]

Technically, Warren Buffett is inclined into the traditional way of investing- which primarily revolves around the acquisition of stocks and business ventures in order to increase their influence and sales. Bitcoin, which is decentralized in nature, makes it difficult for them to comprehend the processes and system. That is why, most of his statements are prejudicial to bitcoin's existence as he does not understand on how the blockchain technology works! Funny thing is, people who also do not know the background of bitcoin tend to be influenced by these statements and they start this revolution against cryptocurrencies.

For people who dont have any idea on whats blockchain technology or even just with Bitcoin would really be easily influenced with this words and most targets of this one are those people who are on stocks and forex trading which buffett words will really put questions on their minds it would be either they do believe directly or do make some little research first and for non-investors they will most likely to believe on the words of famous people and its not a surprising thing.

Fred is correct, bitcoin just can't get erased and it's the path that we are going to take no matter what they do. Warren Buffet is just a grumpy old men who wants to stay in the old lifestyle where he can remain living like a king.

Interesting. I might even consider that the statements that he made are actually part of his scheme. The whole thing might be an act and I even consider the possibility that he already invested into some cryptocurrencies in the market, which explains on why some coins suddenly increase on their supply.

Scheme or not but i do agree that Buffett is a grumpy old man which do keep on targeting cryptocurrency or bitcoin itself without even knowing on its actual use and proclaiming things without any consideration.

[RodeoX]

@Slow death, richardsNY, darkangel11, bbc.reporter

Good comments guys.  I think Warren Buffett himself would agree that one should only invest in what they throughly understand. In fact he has said that. I'm guessing he gets ambushed all the time with questions about the economy that are way out of his territory. If he sat down to think about it, he may answer differently.