Chamath Palihapitiya: I Am A Buffett 'Disciple' But He's Wrong About Bitcoin | CNBC

Chamath Palihapitiya: I Am A Buffett 'Disciple' But He's Wrong About Bitcoin | CNBC

Chamath Palihapitiya, Social Capital founder and CEO, discusses his outlook on bitcoin and recent critical comments on the digital currency from Bill Gates and Warren Buffett.
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Chamath Palihapitiya: I Am A Buffett ‘Disciple’ But He’s Wrong About Bitcoin | CNBC

Billionaire investor Warren Buffett is wrong about bitcoin, tech venture capitalist Chamath Palihapitiya said Wednesday.

“Not everybody is right all the time,” the former Facebook executive told CNBC’s “Squawk Box.” He said knowledge about technology is not in the Berkshire Hathaway chairman and CEO’s “circle of competence.”

Buffett bashed bitcoin Monday in an interview with CNBC’s Becky Quick, saying the world’s largest cryptocurrency doesn’t produce anything except more buyers looking to make money by selling to new buyers. Berkshire Vice Chairman Charlie Munger and Microsoft co-founder Bill Gates, a Berkshire board member, slammed bitcoin as well.

Palihapitiya, who called himself a Buffett “disciple,” said he sees the cryptocurrency as a replacement to gold. “Something like bitcoin is really important,” Palihapitiya said, “because it is not correlated to the rest of the market.”

Palihapitiya added that he feels he is “in two different universes. I need a passport to go between the bitcoin world and the regular world.”

He said people like him who have owned the cryptocurrency since 2012 view it as a hedge to the “traditional financial infrastructure.” Whether that’s true or not is unclear, he added, “but that’s how we’ve all viewed it.”

It’s important to remember what happened during the financial crisis, Palihapitiya said. “Everything broke down” and “things that we thought were hedges went away.”

The cryptocurrency, which has faced heavy skepticism, was around $9,275 on Wednesday morning, according to industry site CoinDesk.

Over his four-year tenure at Facebook, which started in 2007, Palihapitiya served in various management roles, including vice president of user growth.

In December, Palihapitiya bashed social media, and by extension Facebook, for creating a society that confuses “popularity” with “truth.” He argued, “The tools that we have created today are starting to erode the social fabric of how society works.”

Facebook took issue with Palihapitiya’s remarks, saying in a statement that he hasn’t worked for the company for six years, and insisting that the company has undergone changes since then.

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Musheer Moses says:

TokenGen​ smart contract platform product of FabricToken highly under valued project

Abhishek shah says:

CNBC are idiots. Let the guy at least make his point. It was horrible to watch.

SKAmillz009 says:

Before you question bitcoin. Ask your why do banks exist

Jae West says:

Her: So you're saying you like non producing assets?
Him: 😐

BRBallin1 says:

Anything that spawns out of thin air (i.e. digital currency) holds no value on its own.

Ivan says:

I don't think Bitcoin is meant to be a replacement of gold. I think it's meant to be a replacement of paper money.

Kenneth Eilor says:

If it’s not bitcoin it will be another crypto currency… jst wait

Merit says:

Reporters are biting him. Lol

Hybrid Alien says:

NOW Satoshi Nakamoto founder of bitcoin. How common is that name in Japan? Like a Bill Smith? See the youtube video "I smell a rat in crypto"

Hybrid Alien says:

If I had a printing press and made paper money/US dollars. Would that not be counterfeit currency? NOW if I made a digital currency and said it was pegged as $1 US dollar like Tether, would that also be close to being counterfeit currency?

Abhaya Premawardena says:

bitcoin is how all terrorist attacks are financed.

β€”β€”β€”β€”β€”β€” says:

It’d be one thing to interrupt him if they were smart, but these are just self important goofs. Nobody wants to hear their stupid interjections.

timothy silvius says:

Buffet uses his insurance company as a bank because he could not tolerate the high interest rates. So, now he follows the rothy line that crypto is bad and the toxic debt backed fiat dollar is great. How is his advice gonna work out for the pensions that will soon be insolvent. The pension funds need annual 7% returns to stay positive. Crypto is the only way out for them. Printing trillions of dollars and having half of it disappear into a black

Andrew Lee says:

Lol bitcoins is scummy bc banks and financial institutions are pillars of morality. Lololol. At least blockchain isnt rigged and rules dont get manipulated.

Chris Spark says:

Everybody who compares bitcoin with money or relates it to money is an idiot. Bitcoins cannot be leveraged, replicated or destroyed !!! Guess what else have these characteristics? ENERGY !!! Since money is created to symbolize the exchange of energy between people or control of energy by printing notes, Bitcoin is a threat to all people currently in POWER.

People that have gone to bitcoin with the idea to make money and support bitcoin publicly and say it is a hedge are idiots as WELL !!! Do not worry about the idea and concept(BITCOIN) Is already there and since is in harmony with NATURAL LAW it will take over soon or later,

AMG3320 says:

Bar none the worst show on CNBC thanks to the hosts.

Henry Zhang says:

Can anyone explain a bit more why bitcoin has value except being a hedge.

Ash Sparrow says:

He probably would think different if he knew and understood what Ripple’s #XRP can and will achieve! Then he’ll willing to invest billions into it because it’s about to be a regulated digital asset with a value!! πŸ˜‚πŸ’°

jm m says:

aaaaaaand now its in the low $5k…. This guy really has nothing to lose… he can afford an investment as a sunk cost…others can't. Don't fall for the bitcoin scam.

Jacob Klein says:

Buffet wasn’t wrong

Tien Doan says:

Let's be clear about Bitcoin. Buying it is the same as buying gold. It's not a productive asset, it's a currency. When you buy bitcoin, you're not contributing to society. Bitcoin is not an asset because it does not generate money by itself. It rely solely on its valuation to make you money! But the problem with Bitcoin is that ANYONE can print it, just like the bank printing cash. Look at miners, and you will understand. The more bitcoins, the less valuable it is.

Now… if you're buying bitcoin thinking that you're going to make money. You have to focus on the short term. Long term games in bitcoin will lose against a long term game in the stock market hands down. Bitcoin got destroyed by the stock market when you at it's inception date till now.

Crypto Train says:

nobody wants to listen to that 100 yr old man and his shelfish ways He will never understand Bitcoin

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