The traditional investment community has been split on Bitcoin and crypto, with some top investors offering endorsements of the nascent technology, while others frequently offer scathing critiques.
Warren Buffett is one such investing legend that has frequently shared negative thoughts on Bitcoin, claiming that the digital currency’s value is novel, making it a simple speculative tool rather than a legitimate asset.
In spite of this, another investment legend is now parting ways with Buffett when it comes to crypto, claiming that all investors should have some BTC allocated to their portfolios, and deeming Buffett’s point of view as “outdated.”
Chamath Palihapitiya goes long on Bitcoin, calls Buffett’s approach to crypto “outdated”
In a recent interview on Buffett’s views on the nascent technology, claiming that it is an outdated point of view., Chamath Palihapitiya – the CEO of Social Capital and co-owner of the Golden State Warriors basketball team – offered his thoughts on Bitcoin, explaining that he ardently disagrees with
Although Palihapitiya splits ways with Buffett when it comes to crypto, he is still an ardent admirer of the investing legend, telling the interviewer that he has learned an enormous amount from the few interactions he has had with him.
“He is completely wrong and outdated on this point of view. I think he’s an exceptional person. I’ve learned an enormous amount, both from afar and the few interactions I’ve had with him.”
BTC portfolio allocation a great way to guard against global turmoil
Palihapitiya further went on to explain that he does believe retail investors should allocate some Bitcoin to their portfolios due to it being uncorrelated with more traditional assets.
“I think a reasonable strategy is to say 1% of my net worth should be in something completely uncorrelated to the world and how the world works.”
In spite of this, he does not believe that Bitcoin should be treated as a safe haven asset that is purchased whenever there is some turmoil within the global equities markets.
“I don’t think when you wake up and see a coronavirus scare and the Dow down 2,000, you should not be going in and buying bitcoin. That is an idiotic strategy.”
Although BTC has yet to win over Buffett, it does appear that the cryptocurrency is gaining the support of many notable figures within traditional finance, which may be a sign of growing adoption.