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Why Warren Buffett Is Wrong on Bitcoin, According to Legendary VC Fred Wilson

Why warren buffett is wrong on bitcoin, according to legendary vc fred wilson

Why Warren Buffett Is Wrong on Bitcoin, According to Legendary VC Fred Wilson


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Legendary venture capitalist Fred Wilson has issued an open response to Warren Buffet’s recent claim that bitcoin is equivalent to “rat poison squared” is fundamentally flawed. The American investing tycoon, Wilson said, has not done his research.

Why bitcoin Has Value

Speaking at the Consensus 2018 conference in New York City, Wilson said that the true value of the bitcoin ecosystem would accrue to the protocol itself and not the businesses that build on top if it. He stated that Buffett hasn’t “taken the time to really understand what’s going on here” before saying that his firm, Union Square Ventures, is making highly speculative bets but that it would “all work out”.

Wilson, whose funds hold investments in web 2.0 businesses like Twitter, Tumblr, and Kickstarter, did caution that some of the current valuations of existing tokens are inflated. He went on to say that they will not represent a good deal even years from now.

Wilson went on to say that he thought governments would attempt to control cryptocurrency and would enjoy some success, but said that they wouldn’t be able to undo the work that has already been done, likening it to trying to “put the genie back in the bottle”.

Fred Wilson’s Open Letter to Warren Buffett

Fred wilson
Union square ventures founder fred wilson | source: youtube

Wilson was responding to billionaire Buffett’s recent comments, made during the Berkshire Hathaway annual shareholder meeting at the beginning of the month, when he described bitcoin as being “rat poison squared” and said that bitcoin “is creating nothing”.

His comments drew a lot of criticism, not only from blockchain entrepreneurs but from respected businessmen and venture capitalists like Wilson himself. However, those opinions are shared, at least to some extent, by the likes of Bill Gates and most major banks.

Following the meeting, Wilson posted an open letter on his AVC blog, and he repeated his comments when speaking during the annual Consensus conference this week. He stated that Buffett dislikes bitcoin because of the lack of cash flow for the underlying networks. He hinted that Buffett’s investment style is that of investing in businesses, and because bitcoin is decentralized there is no underlying business in which Buffett can invest. That, Wilson posits, is why Buffett has been put off by the idea.

Wilson did temper his comments with some words of caution, saying that he expected governments to have some success in rationalizing and, ultimately, regulating the industry but said that the ICO market is half-way to a new capital market.

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Published at Fri, 18 May 2018 06:24:17 +0000

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Trade.io Announces Confirmed Pre-ICO Partnerships With Two International Brokers That Will Adopt Trade.io Technology & Exchange For Client Trading

Investors have been anxiously awaiting the time when those huge brokerage commissions would be no more. Thanks to trade.io that time has come and early investors in this blockbuster ICO will see unheard of profits that they can actually keep without paying out that bulky commission to their “Advisor”.

[Note: This is a press release.]


Zug, Switzerland – On the heels of an announcement of Trade.io’s upcoming ICO, Trade.io can now confirm that two early adopters of this new financial trading platform will, in fact, use this trading exchange on the first day of operations. In an unusual twist, this development of early adopters will prove to be extremely profitable for early investors of this highly anticipated Initial Coin Offering.

Trade.io has already sent ripples through not only the Financial Sector but also the world of ICO investing as this ICO stands out among the rest. Most Pre-ICO’s although may have great potential, many will ultimately fail due to either a lack of interest or a lack of users. It is important to understand that Trade.io has successfully secured two regulated brokerage firms that will use the platform for trading immediately upon release, which will allow for an immediate expansion of the platform and distribution.

During a recent press event, Jim Preissler, the CEO of Trade.io was quoted as saying, “We’re fortunate to have two regulated brokers, FX Primus Europe (CY) Ltd. (FXPRIMUS) & Primus Capital Markets UK Ltd. (PCM), as early adopters of our platform. In FXPRIMUS we have an EU regulated company with hundreds of thousands of clients which could potentially utilize trade.io’s technology, and in PCM, we have an FCA regulated company with a sterling reputation and world-class regulatory oversight.”  Preissler continued, “I feel we’re in a unique position in that we have not yet launched, but are attracting interest to be first in line.”

In addition, trade.io also has commitments from private companies who wish to list on its exchange. To this, Mr. Preissler noted:

As part of our investment banking offering, we provide a service where we assist start-up and existing companies in raising capital and eventually listing on our exchange.  It’s a unique turnkey type setup, where we handle all the ‘legwork’ at a fraction of the cost and effort of a traditional IPO, so the client can focus on running its business.

Preissler continued:

An interesting company of note who approached us about listing on our exchange was THB Holdings. They are launching an innovative Super Sports Race Franchise called The Human Baton, and have aligned themselves with partners who have worked alongside such superstars as Justin Timberlake and Beyoncé.

As with any Initial Stock Offering, the key is to get in early before the stock hits the exchange. The same concept applies to ICO’s (Initial Coin Offerings). Trade.io is selling 275 million TradeTokens (TIO) via an ICO,  with the Pre-ICO starting November 7, 2017. The chance to get in early at a discounted price will end November 22, 2017, when this highly anticipated ICO is set to launch.

To learn more about how to invest in this opportunity or to visit their official website, visit trade.io or review their Whitepaper directly at https://www.trade.io/whitepaper.

Media Contact:

trade.io
Attn: Media Relations
Bahnhofstrasse 21
6300 Zug, Switzerland
Ph: +357 25 262 054
helen@trade.io


Images courtesy of Trade.io

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