Warren Buffett: Sharp criticism of Bitcoin, but very real indirect gains

Billionaire Warren Buffett has once again spoken out about cryptos, particularly bitcoin (BTC). Its critical position regarding these assets has not changed. The famous investor is deeply convinced that cryptos, particularly bitcoin, constitute the worst forms of investment there are.

Warren Buffett would not bet a penny on bitcoin

Billionaire Warren Buffett, renowned for his unwavering investment philosophy, remains a staunch critic of cryptos, particularly bitcoin. In a recent speech, he compared crypto to ” death to rats “.

As we can see, investor skepticism regarding the long-term value of the asset has not diminished. A position which is not just rhetoric, but a fundamental aspect of its investment strategy which prioritizes assets with tangible income.

Thus, as part of a meeting with Berkshire Hathaway shareholders, Buffett reiterated his caution towards bitcoin. This, while maintaining that he would not even pay 25 dollars for all the bitcoins available on the market!

A very polite way of stating that cryptos have no intrinsic value and are not capable of generating income. Not like agricultural land, which directly contributes to food production and the economy.

Warren Buffett maintains his critical stance towards bitcoin
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A position that hides something else?

It seems that Warren Buffett's notoriously anti-crypto opinion needs to be qualified. Because some information shows that despite Buffett's personal position on bitcoin, Berkshire Hathaway, his investment company, has ventured into crypto-related investments.

This adventure, which, it should be noted, is fundamentally indirect, took place via Nu Holdings. It is a Brazilian fintech focused on financial services into which Berkshire Hathaway injected $1 billion in 2021.

While Warren Buffett remains skeptical of bitcoin itself, Nu Holdings' success in the crypto space has proven profitable for his firm. Nu Holdings' crypto activities have contributed to its overall growth, generating significant gains for investors.

Some believe that the success of Berkshire Hathaway's investment in Nu Holdings could prompt the billionaire to reconsider his stance on cryptos. Especially since bitcoin has shown outperformance compared to traditional indices. That remains to be seen.

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