The world’s wealthiest individuals are showing significantly less interest in cryptocurrency compared to traditional finance, which is not surprising. What is surprising is that major crypto critics like Warren Buffett are making money from this field. Yes, it’s true; the famous billionaire who said he wouldn’t buy all the Bitcoin even for a few dollars is profiting from crypto.
Warren Buffett and His Investment Strategy
Crypto has always been met with skepticism and often hostility by Warren Buffett, but there is another side to him. The well-known crypto skeptic is indirectly making money from cryptocurrency.
Berkshire Hathaway, under Buffett’s leadership, is a high-return company that invests in solid companies with strong cash flows. The value of Berkshire Hathaway, which has long been preserved and become the focus of relatively cautious investors, owes its continued success to this. Despite strong fluctuations in the stock markets, Buffett’s company remains strong for this reason.
In other words, the world’s most famous billionaire has an investment strategy that always relies on solid ground.
Warren Buffett and Crypto
However, this does not mean that he is not indirectly investing in crypto. In a 2018 interview, Buffett, who said that cryptocurrencies produce nothing, argued that their value is determined only by the possibility of the next person buying them at a higher price.
“If you told me you owned all the Bitcoin in the world and offered it to me for $25, I wouldn’t accept it because I can’t do anything with it. I would have to sell it back to you. It would be of no use.”
Nevertheless, Berkshire Hathaway made a significant investment in the Brazilian fintech company Nu Holdings. Despite Buffett’s personal stance, we saw that his company made significant gains by entering a company that embraces crypto.
After the initial $500 million investment in 2021 and the subsequent $250 million investment, the stock prices increased by about 50% only by 2024. Last year, the value of the company Buffett invested in had increased by 100 percent.
Although Buffett’s personal views on Bitcoin and crypto currencies have not changed, the crypto company in Berkshire Hathaway’s portfolio has managed to stand out by reaching profits far beyond traditional investment companies. Perhaps the aging Buffett will turn into a Bitcoin maximalist before he dies?
