Warren Buffet is one of the richest men in the world and has consistently been in the top five for more than a decade now according to Forbes. However, despite his rich acumen for wealth and investment, he has made it a personal point to reiterate that Bitcoin chief among many other cryptocurrencies is nothing but a fraud and an elite gambling platform.
Blockchain Love: Are People Uninformed?
Warren Buffet, like so many other affluent influencers and financial heavyweight investors like him, has in recent times discarded the potential and purpose of digital currencies as a whole while maintaining that blockchain, the decentralized technology powering cryptocurrencies, could be the real game changer instead. Buffet told CNBC in an interview:
“It doesn’t do anything. It just sits there. It’s like a seashell or something, and that is not an investment to me. It’s a gambling device… there’s been a lot of frauds connected with it. There’s been disappearances, so there’s a lot lost on it. Bitcoin hasn’t produced anything.”
It is not surprising that Buffet is dismissing Bitcoin, or even lauding blockchain, what is more surprising is that Buffet even knows what blockchain technology is in the first place. Warren Buffet has one of the keenest senses of investment in the world and made most of his fortune by learning to invest from an early age.
However, he has rarely been actively involved in the tech space. Not a dilettante and not a participant, it is hard to determine where Buffet falls as regards to this aspect. For a man who dismissed the two biggest A’s in tech during their very nascent stage: Amazon and Apple, any techpreneur would be easily led to take his advice with a pinch of salt.
A strong business acumen is not the same as determining the next thing defining evolution technology-wise. Some people dismissed the ‘Arpanet,’ ‘Widenet’ or ‘Internet’ during its earlier stages, sticking to books and ledgers and preferring the ‘integrity’ of physical documents: that orientation passed faster than anyone hit them. Blockchain and cryptocurrency technology show every sign of being the next thing storm to sweep everyone away.
Sorry Buffet: Crypto is Much more than Blockchain
Expatriates and financial influencers are finding a peculiar relish in throwing a dig at cryptocurrencies while praising its ‘backbone technology.’ However, cryptocurrency protocols have come a long way than a simple/conventional blockchain backbone; in fact, the gap is only widening with each passing innovation.
According to Udi Wertheimer, blockchain is as important to Bitcoin as exhaust fumes are to a car. Perhaps, a bit of exaggeration, but it very well drives home the point. Warren Buffet should be paying more attention.