Billionaire investor Warren Buffett — who is often described as the ‘Oracle of Omaha’ — has been a long-time critic of Bitcoin, the world’s largest cryptocurrency. Not long ago, the Berkshire Hathaway CEO dismissed Bitcoin as a “gambling token” with no intrinsic value.
Crypto is a sweet deal, even for Warren Buffett
However, it seems that winds of change have begun to blow. Buffett has reportedly added millions to his fortune by investing in Nubank, a Brazil-based digital bank that facilitates crypto trading.
Before flexing its initial public offering (IPO) in 2021, Berkshire Hathaway — the holding company of Warren Buffett — had reportedly funneled $500 million into Nubank. Since then, Berkshire Hathaway has directed an additional $250 million towards the Brazilian digital bank. Berkshire Hathaway’s total investment of $750 million in Nubank is currently valued at about $840 million. This suggests that Warren Buffett’s indirect bet on Bitcoin has paid off—making the billionaire even richer.
Source: Google Finance
Earlier this year, Nubank further cemented its position in the crypto industry by launching its own altcoin, Nucoin. The launch has turned out to be a financial bonanza for the Brazil-based digital bank, with its stock price surging by more than 100% this year—leapfrogging other elephantine stocks in Buffet’s portfolio, including that of Amazon, Apple, and Coca-Cola, among others.
Berkshire Hathaway’s investment in Nubank has not only catapulted Buffett into the digital assets market, but it also represents a key inflection point for traditional finance and crypto. While Buffet’s disdain for Bitcoin is well-documented, with the billionaire recently likening it to “rat poison squared,” even the hardline critics would have to agree that the fate of the global economy is inadvertently tied to crypto.
Fate of the global economy tied to crypto
While crypto is yet to have its coming-of-age moment, it has penetrated almost all key sectors in the short span that it’s been around — including education, real estate, retail, travel, and gaming. More than 150 countries are currently exploring a central bank digital currency (CBDC), while some European nations have announced they will accept payments in Bitcoin for government services.
Furthermore, venture capitalists have been investing billions in the blockchain gaming industry each year, while heavyweight traditional banks continue to hold millions in crypto.
Last month, Todayq News reported that major economies like the US, the UK, European Union are seeing crypto transactions worth billions of dollars annually. Interestingly, people in low-income countries, in particular Sub-Saharan Africa, actually prefer cryptocurrencies when making purchases. This shows that while crypto is still in its infancy, the effects of Bitcoin and other crypto tokens on the economy cannot be ignored.
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