Tron Won’t Change Warren Buffett’s Mind On Crypto

In our weekly 'mailbag' we answers readers' questions:

Q: Tron founder Justin Sun paid $4.57 million at a charity auction to have lunch with Warren Buffett. Is that a good thing or a bad thing?

A: First, some background. Warren Buffett is not a fan of cryptocurrency. In 2018, he said bitcoin is “probably rat poison squared.” Berkshire Hathaway vice chairman Charlie Munger, Buffett’s business partner, chimed in, saying, “[Crypto is] like somebody else is trading turds and you decide you can’t be left out.”

And if Buffett thinks bitcoin is a fraud, he’s really going to hate Tron. Tron came under fire when it was revealed that much of its white paper was plagiarized from other projects, namely InterPlanetary File System (IPFS) and Filecoin.

Tron also catches flak from the crypto community because many believe it is too centralized. The problem, as many see it, is that the majority of the nodes that process and confirm transactions are controlled by Tron. And many of us are attracted to cryptocurrencies like bitcoin precisely because they are decentralized and not controlled by any single party. Tron’s former chief technology officer left the project earlier this year, citing concerns over its lack of decentralization.

All of this should make for quite an interesting lunch. I’d certainly love to be a fly on the wall there.

As for whether it’s good or bad, I don’t think it’ll have any real impact on the market. And I’m confident that Buffett isn’t going to change his mind about crypto based on a conversation with Justin Sun. In fact, I doubt Buffett’s mind can be changed on this subject at all, because he is fully invested in the legacy financial system, as I explained here in more depth.

Fortunately, I don’t think most people look to Buffett and Berkshire Hathaway for advice on anything related to new technology. They have zero expertise there.

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