- Fred Wilson has openly responded to Warren’s claim on Bitcoin.
- He said Warren hates Bitcoin and didn’t do a proper research on the cryptocurrency.
Barely a week after Chamath Palihapitiya countered Warren Buffett’s recent offensive remarks on Bitcoin claiming that “not everybody is right all the time,” Fred Wilson, a legendary venture capitalist has also issued an open response to counter Warren’s recent remark.
Speaking at the Berkshire Hathaway annual shareholders’ meeting earlier this month, Warren Buffett remarked that Bitcoin is “probably rat poison squared” and that Bitcoin “is creating nothing.” To this, Fred Wilson, founder of Union Square Ventures, claimed Warren has not carried out his research on Bitcoin properly.
Fred, during the Consensus 2018 conference in NYC, stated that the true value of the Bitcoin ecosystem would accrue to the protocol itself and not the businesses that build on the cryptocurrency. He said that Warren has not “taken the time to really understand what’s going on….” Fred added that some of the current valuations of existing cryptocurrencies are inflated, and this does not represent a good deal. Fred said he thought regulators would have taken a better step by controlling cryptocurrency, which would bring some success, but clamping down cryptocurrency or trying to undo the work that has already been done is like trying to “put the genie back in the bottle.”
Warren’s remark has drawn lots of critiques, not only from bitcoin enthusiasts but from well-known businessmen and venture capitalists like Fred himself. Chamath Palihapitiya was one of them.
Following the annual meeting, Fred posted an open letter on his AVC blog, and also made an open response while speaking this week at the annual Consensus conference. Fred said that Warren hates Bitcoin because of the lack of cash flow for the underlying networks. He hinted that Warren prefer to invest in a tangible business, and because the decentralized nature of Bitcoin does not provide any underlying business that Warren can invest in, that is why Buffett disliked the Bitcoin idea.
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