Berkshire Hathaway chief Warren Buffett earlier maintained silence on cryptocurrency tropics. At the 2021 shareholder meeting, he refused to talk about bitcoin and probably made the crypto enthusiasts unhappy or angry. However, his company has now stepped into the crypto investment segment. It has invested in Brazil-based Nubank, which is crypto-friendly and the largest fintech bank in the country. Its NuInvest investment platform offers bitcoin ETF. Buffett invested first in June 2021 and thereafter increased his position later by $1 billion.
Even though it is fun to build up a connection between Berkshire with crypto, it is true that Buffett has not changed his stance on the topic. He has neither hinted about it.
The portfolio of Berkshire is worth more than $300 billion and another $150 billion is in cash. This means it has invested just 0.2 percent in the new venture. In fact, the investment is just a drop in the ocean.
It is here to understand that NuInvest is not a crypto exchange even though it facilitates investors to put money in Bitcoin ETF.
Berkshire invests in various financial institutions like Bank of America, American Express, Wells Fargo and BNY Mellon.
With the rapid growth in the adoption of cryptocurrencies, these companies are seeking to blend digital assets in their businesses. If these institutions invest in cryptos, Buffett may have to face some ribbing as he has been comparing the segment with rat poison.
Apart from all these, Buffett has continued saying crypto coins lack intrinsic value and crypto investors could land up with disappointments.
Bitcoin is the first cryptocurrency ever launched. It was introduced in 2009. Since then thousands of altcoins have come into existence including Ethereum, Dogecoin and Litecoin. The segment is decentralized and based on blockchain technology. It is not under the direct control of any government, bank or institution.