The venture capitalist and co-founder of Union Square Capital, Fred Wilson, who has invested in companies such as Tumblr, Twitter, Kickstarter and Foursquare, published a response to Warren Buffett and Charlie Manger, who recently criticized bitcoin.
Instead of attacking representatives of the old school of finance, Wilson tried to explain what they overlooked, criticizing crypto-currencies.
He cites an interview with Buffett Yahoo Finance on April 28, in which he talked about the differences between investing and speculation. Buying property is an investment, and investing money in cryptocurrencies is not, because the latter are not a production asset, but grow only from other speculators who are willing to pay a large price for them, explained Buffett.
Wilson writes that he could agree with this opinion if it were about collectibles, for example baseball cards, but behind bitcoin there is a technology that allows him to produce something very important and valuable, namely a decentralized infrastructure.
They are the fuel that powers a new form of technology infrastructure that is being built on top of the foundational internet protocols.
Co-founder, Union Square Capital
Wilson argues that Buffett and Manger do not understand how valuable crypto currencies outside the exchanges are, but noting that he himself does not have a clear understanding on this issue, since this is a completely new kind of currency that has no analogues in history.