Fred Wilson, Union Square Ventures: Warren Buffett just doesn’t understand crypto

Fred Wilson, co-founder of Union Square Ventures (fund operating $1B of assets as of 2016), is categorically against the view expressed by billionaire Warren Buffett who heads Berkshire Hathaway.

The response to the “rat poison squared” approach has been stated at Consensus 2018 in New York.

"Calling it ’rat poison’ to me suggests that they haven’t taken the time to really understand what’s going on here. If all you think of it as is some new asset class, then I think you’ll come to that conclusion."

The businessman has advised to choose the MV=PQ approach instead of DCF, where M means money supply, V - circulation velocity, P - price level and Q - produced output. DCF means discounted cash flow, another approach which can be read about on Investopedia.

As Fred Wilson believes, people like Warren Buffett are trying to see the cash flow and when not seeing it, gets to a full stupor. The current ICO market is the early version of the new capital markets which are still to come, venture capitalist concluded.

Warren Buffett has indeed taken a strict stance on cryptocurrencies, as witnessed both by the recent comment and statements made before it. He was supported by Berkshire Hathaway Vice Chairman Charles Munger.

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