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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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Written by frances

Lawyer, Believer, Idea Agent, Database Wrangler, Human Casserole. I want to see your peacock.

32 Comments

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  1. Es ist ziemlich logisch, warum Sie so etwas sagen, weil sie durch das Fiat Geldsystem extrem profitieren. Weiss gar nicht wie reich die noch werden wollen. Geld ist eine Sucht, anders kann ich es mir nicht erklären, warum man solche Scheisse labert, wenn man bereits so reich ist. Angst, dass Ihr Fiat Geld plötzlich extrem an Wert verliert? Stellt euch vor was ihr sagen würdet, wenn ihr derart reich wärt. Ist logisch, dass solche Vermögen nicht schnell mal in Krypto zu investieren ist, ist mal das eine und wenn man so reich ist profitiert man extrem von unserem korrupten Fiat Geldmafiasystem! Niemand der Milliardär ist wird gut über Krypto reden!

  2. Just oldies on that segment LOL. and this non-productive BS about gold. Everything is a value that other agrees to give you for it. It include your wage, the rent for a property etc. WTF

  3. Currency is what the people agree on…. Commerce, Barter….. since the existence of Humanity.. 🙂

  4. So, to recap. This dude dismissed Warren Buffet, Charlie Munger and Bill Gates concerns about Bitcoin as a valuable asset to have in your portfolio for the following reasons:
    1) Technology is not Buffet's "forte"
    2)Bitcoin is not correlated to other asset classes (despite one of the journalists replying that this is obviously false)
    3)The youngsters like me supposedly would buy Bitcoin rather than gold because it reflects more who they are. Are we talking money or fashion here??
    This guy was a former Facebook exec and is now a venture capitalist. Good Lord …

  5. Those three "scumballs" led to the state of the American people today…with all the homeless, remember Ezekiel? "They did not strengthen the arm of the poor"? Take a lesson from Andrew Carnegie. Study the culture of late 1800s/early 20th Century. The so called rich we have today are not rich in culture.

  6. ask a question to only INTERRUPT!!! SHUT UP AND LET HIM SPEAK!!!!!!!!!!!!!!!! hate these interviewers with no courtesy.

  7. Cryptos, coins, tokens, 3D animation/gaming….theses are all the future. Dinosaurs about to go extinct.

  8. She say "It is only worth more only if people are willing to pay more for it" This is true of any asset. Stocks, real estate, currencies, etc. This is economics 101. Something is only worth at the movement what someone is willing to buy it for. This is the reason that art is valuable. This is the reason people can sell an item for high value only because of the perceived importance of the item being historic significance for example.

  9. GOLD was too complicated for me to buy! Everybody tried to rip me off 14 karat 18 karat 24 karat – buying and selling fees.. treating it with acid – tungsten cores, weigh it … dooh…
    BITCOIN was easy – transfered euro/dollar to bitstamp – bought it – transfered it on my Trezor cold storage wallet.

  10. I don't care what any of those people think. The NEW rich are going to replace all of them. We won't be individually as rich as they are but there will be many more of us and a big group of "double digit" millionnaire's, who were just "regular people" before finding out about the Crypto Currencies. I got into it last Summer and bought on the dips. Thankfully, I put in a low six figure number and not just a few hundred or few thousand dollars. It has changed my life and I am excited about this technology that is going to change the world, just like the internet did. The internet empowered the little guy and improved information and free communication between the regular folks and now it is time to bring this to the financial services.

  11. Buffet and Monger grew up in an era where everyone believed the government, the banks, and the fake news. Their ignorance and old age is their demise.

  12. "The reality is: things change" People do yourself a big favor and buy crypto, you will thank me later.

  13. Technology is not his circle of competence… But banking, payment systems are in his circle of competence. Bitcoin tries to solve a wrong problem.

  14. Oh, scummy like the HSBC money laundering cartel. Scummy like the Wells Fargo criminals who skim money from peoples accounts. FUCIN WANKER….
    Makes perfect sense!

  15. There are just as much scum or even more in gold and traditional forms of money. To say there’s more in crypto is dishonest.

  16. This guy is sitting there because of money from Facebook, with a fund named "social" and talks down about it. What a hypocrite!

  17. It's ironic how I listened to Buffet, whose key principle is to buy at the time of highest pessimism, and invested in Cryptocurrencies, while he is the biggest skeptic of Cryptocurrencies himself.

    I hope this makes sense.

  18. Bitcoin and cryptos have the potential to put an end to the existing fiat currency and weaken the power and influence of central banks. Whether it will happen or not we dont know. But to say its a scam etc is pure arrogance.

  19. "Its not correlated to the rest of the market".

    Thats factually wrong, everything is correlated no matter how segmentated it is. Bitcoin is an speculative asset not a currency, and its difficult to imagine that it will ever become one. Thats fine, but its certainly not risk free.

    On other note, I dont have a very technical backgroud in computer science as I am a Data Analyst, and my major was in Sociology. But I wonder what are the implications to Blockchain if quantum computing is sorted in 10 to 15 years. Wouldnt that render it unsafe ?

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