Co-founder of Morgan Creek Digital and crypto enthusiast, Anthony Pompliano, defended Bitcoin in an interview with CNN and said that Warren Buffett was not the best person to take technology-related advice from.
I spoke to @jchatterleyCNN this AM.
Explained why Warren Buffett isn't a great person to listen to on technology and why Bitcoin's monetary policy is superior to fiat monetary policy.
If this video gets 500,000 views, Julia will bring on more Bitcoiners.
You know what to do ?? pic.twitter.com/lEcyQkbG6w
— Pomp ? (@APompliano) February 25, 2020
Warren Buffett: Crypto Has No Value
Pompliano’s comments come in response to an interview Buffett gave on February 24, wherein he discussed his position on cryptocurrencies as an investable asset class. Buffett reiterated that he believed digital currencies had “zero value” because “they don’t produce anything.”
Buffett added that despite speculation on Bitcoin’s potential benefits since its introduction a decade ago, it was only really used to move money around for illicit purposes. “The logical move from the introduction of Bitcoin is to short suitcases… You can look at that as the economic contribution of Bitcoin,” he said.
Buffett Not the Best Person for Tech Advice
Pompliano elaborated that although people are bound to listen to Buffett’s opinions because he is undoubtedly one of the best investors in the world today, he did not think it was logical to accept tech advice from someone who (until recently) used a flip phone and didn’t use email.
“When it comes to technology, there are better people to listen to,” he added.
The tech mogul added that Buffett should stick to his domain – traditional investing – in which he was a proven success.
Additionally, Pompliano pointed out that one of the companies in Buffett’s portfolio, Wells Fargo, was found guilty of laundering money for the Sinaloa cartel.
Pompliano expressed similar sentiments after Buffett’s CNBC interview on February 24. He took to social media to criticize the business magnate’s dismissal of Bitcoin and cryptocurrencies:
Long Bitcoin, Short Suitcases!
Wait till Buffett hears that Wells Fargo, one of the companies he has a minority stake in, knowingly helped the Sinaloa drug cartel launder millions of dollars… pic.twitter.com/Z7DGHlh9AU
— Pomp ? (@APompliano) February 24, 2020
Bitcoin Monetary Policy is Superior to Fiat
During the interview, Pompliano categorically stated that he believed Bitcoin would be the winner in the competition against government-issued digital coins. He believes that Bitcoin will be the global reserve currency in the future.
Talking about Sweden’s recent Central Bank Digital Currency (CBDC) initiative, Pompliano highlighted that all CBDCs were merely “taking the existing monetary policy and changing the technology form factor.”
Last week, Sweden announced that it had begun testing its pilot digital coin program, e-krona, for one year, until February 2021. The central idea behind the CBDC is to use the blockchain-powered currency to support traditional banking activities and conventional transactions across the country.
Pompliano pointed out that Bitcoin essentially introduces a new form of monetary policy, entirely different from the traditional “fiat inflationary type model.”
“Ultimately, what we’re going to have is a competition of currencies. But it’s not going to be a competition on technology – it won’t be: are they digital or are they not. Everything will be digital. Instead, what we’re going to have is a competition of monetary policy… Bitcoin monetary policy is superior to Central Bank monetary policies and ultimately, Bitcoin will be the winner. It will be the next global reserve currency at some point in the future,” he added.
Pompliano vs. Schiff: The Bitcoin vs. Gold Conflict
Pompliano’s comments during the interview immediately drew support and criticism from the crypto community on social media.
While a number of crypto leaders (like Binance CEO, Changpeng Zhao) expressed their agreement with many of Pompliano’s remarks, others (like financial broker Peter Schiff) questioned his notions on Bitcoin.
Pompliano and Schiff got into a Twitter spat over whether Bitcoin should be classified as a safe haven asset or a risk asset.
Schiff argued that since Bitcoin was not a safe haven asset, its price was volatile, making it a risky investment. On the other hand, Pompliano maintained that Bitcoin was a non-correlated asset, which implies that its value is independent of political uncertainty.