Warren Buffett lashed out with unprecedented violence against the Robinhood app, defining it as a casino. The attack came during the annual meeting held with the investors of Berkshire Hathaway, the investment fund he founded.
An attack which undoubtedly makes us understand how the oracle of Omaha continues to be very distrustful of the cryptographic space, despite attempts to convert it to the digital economy of Justin Sun in the past.
Warren Buffett's criticisms of Robinhood
A casino of sorts: this is Warren Buffett's judgment on Robinhood, the app that experts say has practically made trading a game. Also facilitated by the fact of not applying commissions on operations.
A judgment which was also joined by the vice president of Berkshire Hathaway, Charlie Munger, who defined what Robinhood proposed profoundly wrong. Adding that their company does not intend to make money by offering negative assets to the general public. A attack however extended to Bitcoin, defined as contrary to civilization and towards which Munger did not hesitate to express his hatred.
Robinhood's response was not long in coming
Of course, the attacks from Berkshire Hathaway could not leave Robinhood leaders unmoved, also in consideration of Warren Buffett's prestige within the financial world.
A spokesperson for the company, as reported by CNBC, has indeed claimed that the attacks in question reveal the annoyance of the old guard on Wall Street, which intends to keep the seats at the table tight, without having to give anything of the banquet to new guests. A simple attempt to maintain privileges which are endangered by the arrival of many new investors, those who use Robinhood without having to go through the intermediation of the old structures.
The annoyance of traditional finance is making a comeback
Buffett and Munger's attacks on new technologies that allow a different and unmediated approach to financial markets are certainly not new. Just think of the statements made a few years ago by Jamie Dimon, chief executive of JPMorgan Chase on Bitcoin, declared a tool for the criminal economy. Or those of Davide Serra, the creator of Algebris, also ready to stamp BTC like a laundry of dirty money. Careless words, like those of Munger, who wanted to evoke a concept, that of civilization, applying it to fiat currencies, giving an ethical connotation to a purely financial problem. Forgetting that cryptocurrencies were also born to try to give an answer to billions of people who are currently excluded from economic life due to the inability to access tools for asset management.
Someone has already repented
If there are those who linger in a sterile controversy against virtual money, it should however be emphasized that others have in the meantime changed their opinion. Not only Jamie Dimon, considered as the bank he led has in the meantime launched its own token, JPCoin. But also the general manager of the Bank for International Settlements (BIS) Augustin Carstens, who recognized the validity of digital assets during an interview with the Financial Times and argued for the need to create electronic versions of the major national fiat currencies.
It remains to be seen whether Buffett and Munger will also change their minds about it, or will continue on their path of closure towards assets that, with all evidence, they do not understand.