- Billionaire Warren Buffet is wrong about Bitcoin, Chamath Palihapitiya condemns.
- Knowledge about technology is not in Buffet’s “circle of competence”
The Berkshire Hathaway chairman and CEO, Warren Buffet has been in limelight for his skeptical statement over Bitcoin for long. His aphorism and advice in the financial world are massively followed by many investors.
In such cases, his negative comments on bitcoin have been reiterated since 2014, when he pointed it as a ‘mirage’, it was trading at around $600. And, last October, he stated that bitcoin market is a bubble, adding, “You can’t value bitcoin because it’s not a value-producing asset.” In January, he hit back again saying cryptocurrencies “will come to a bad ending”, by then the price was around $14,000.
This doesn’t end here. By the end of April, he argued that bitcoin is more of a gamble than an investment,
Last weekend, at the Berkshire Hathaway 2018 annual shareholder meeting, he criticized, saying it as “rat poison squared”.
Buffet struck bitcoin in an interview on CNBC, saying world’s largest cryptocurrency doesn’t produce has any value of its own except more buyers looking to make money by selling to new buyers.
At Saturday’s shareholder’s meeting, Berkshire Hathaway’s vice chairman Charlie Munger supported Buffet calling cryptocurrency trading “just dementia”.
“Oracle of Omaha” Buffet is being the chairman and CEO of Berkshire Hathaway is the world’s third-wealthiest person, according to the Forbes. In the 1960s, he took over Berkshire Hathaway, a struggling textile and converted it into a successful investment. According to his letter to shareholders, his firm’s share price has increased over 2.4m since his takeover.
This kind of shows that he believed in the strategy of taking over firms with business models that are easy to understand with strong fundamentals.
That’s why tech venture capitalist Chamath Palihapitiya, who claims himself to be ‘Disciple’ of Warren Buffet said knowledge about technology is not in his leader’s “circle of competence“.
Palihapatiya, former Facebook and AOL executive, told CNBC that “Not everybody is right all the time”
He sees bitcoin as a replacement to gold. Adding to this, he expressed his feeling to be “in two different universes. I need a passport to go between the bitcoin world and the regular world.”
He didn’t miss to point out that people like him who owned cryptocurrency since 2012, trusted it as hedge to “traditional financial infrastructure.”
He reminded of happenings of the financial crisis, Palihapatiya said. “Everything broke down” and “things that we thought were hedges went away.”