Fred Wilson who is known for his blog and his VC Fund Union Square Ventures which has a legacy of early investments in tech-related startups like Twitter, Tumblr, Etsy, Zynga and even the crypto exchange Coinbase wrote a blog responding to Warren Buffett and Charlie Munger comparing Bitcoin to “Rat poison” and “Dementia”.
Warren Buffett, the legendary investor has been insulting and degrading Bitcoin and other cryptocurrencies on various occasions for quite some time now. He thinks that cryptocurrencies have no underlying value and they are in a tulip-like bubble and will come to a “bad ending”. (He is not really known for his tech related investments as he missed out on most of the tech companies. He also has said that he does not really understand cryptocurrencies).
Recently Buffett said in the interview with Yahoo Finance that:
“If you buy something like a farm, an apartment house, or an interest in a business… You can do that on a private basis… And it’s a perfectly satisfactory investment. You look at the investment itself to deliver the return to you. Now, if you buy something like bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
When you buy cryptocurrency, Buffett continues, “You aren’t investing when you do that. You’re speculating. There’s nothing wrong with it. If you wanna gamble somebody else will come along and pay more money tomorrow, that’s one kind of game. That is not investing.”
Responding to this the famous VC investor and blogger Fred Wilson wrote a blog saying that he does not agree with Buffett and that he believes that these crypto tokens are “the fuel that powers a new form of technology infrastructure that is being built on top of the foundational internet protocols.”
He mentions that he particularly disagrees with the statement that if you purchase Bitcoin you don’t have anything that has produced anything.
Fred Wilson says that Crypto-assets produce decentralized infrastructure.
Bitcoin has produced a transaction processing infrastructure that looks a lot like Amazon Web Services
Ethereum has produced a similar transaction processing infrastructure which is also able to run smart contracts. I believe smart contracts are the most important innovation we have yet seen in crypto.
We have seen many institutional investors and traditional investors not understanding cryptocurrencies and calling it a Tulip mania and a bubble over and over again but we are seeing more interest in investors in cryptocurrencies more than ever and famous investors and figures like Peter Thiel, Jack Dorsey, Richard Branson endorsing and enabling the crypto-ecosystem.
#bitcoin is rat poison because central bankers are the rats
— Honey⚡₿adger (@bitcoinister) May 7, 2018
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