Yesterday, May 16, 2018, well-known venture capitalists Fred Wilson and Balaji Srinivasan, the latter of which is now the CTO at Coinbase, had a chat with Wall Street Journal reporter Paul Vigna on the mainstage of Consensus 2018. During the discussion, Srinivasan and Wilson were asked for their opinions on recent comments made by Warren Buffett, Nouriel Roubini and other notable bitcoin skeptics who have been quoted in the media recently.
In their responses, the pair of tech investors (but mostly Wilson) pointed out the differences between Buffett’s approach to investing and how the crypto asset market works. It is these fundamental differences between crypto assets and traditional stocks that may explain why the “Oracle of Omaha” has a general distaste for bitcoin.
For those who missed it, Buffett recently referred to bitcoin as “rat poison squared” at Berkshire Hathaway’s 2018 annual shareholder meeting.
One of the key counterarguments to Buffett’s assessment of bitcoin made during the chat at Consensus 2018 was articulated by Wilson right after the topic was first brought up by Vigna.
“Calling it rat poison, to me, suggests that they haven’t taken the time to really understand what’s going on here,” said Wilson. “If all you think of it as is some new asset class and some new thing that you can trade, then I think you’ll come to that conclusion. But if you really understand that this is a fundamental innovation in foundational technology for the internet that provides a bunch of new functionality that didn’t exist before this, then what I see it as is like the LAMP stack or something. This is an entirely new stack that we’re going to get to build new applications on top of, and the tokens are just the fuel that lights up that stack.”
The LAMP stack referenced by Wilson is an open-source platform and set of tools (Linux, Apache, MySQL and Python or some other scripting language) that has been used to build dynamic websites and applications during the “Web 2.0” phase of the internet. Some…