Chamath Palihapitiya does not agree with Warren Buffett

Billionaire investor Warren Buffett is wrong about bitcoin, tech venture capitalist Chamath Palihapitiya argued on Wednesday.

"Not everybody is right all the time," the former Facebook executive told CNBC's "Squawk Box," adding that knowledge about technology is not in the Berkshire Hathaway chairman and CEO's "circle of competence."

Buffett bashed bitcoin Monday in an interview with CNBC's Becky Quick, saying the world's largest cryptocurrency doesn't produce anything except more buyers looking to make money by selling to new buyers. Berkshire Vice Chairman Charlie Munger and Microsoft co-founder Bill Gates, a Berkshire board member, slammed bitcoin as well.

Palihapitiya, who called himself a Buffett "disciple," said that he sees the cryptocurrency as a replacement to gold. "Something like bitcoin is really important," Palihapitiya said, "because it is not correlated to the rest of the market."