Is Financial Giant Warren Buffett Changing His Opinion on Cryptocurrency Investments?
When asked whether he would invest in cryptocurrencies, one of the most successful American businessmen and the second wealthiest man in the world with over 75-billion-dollar net worth, Warren Buffett shared a rather negative attitude towards the cryptocurrency market.
Previously, Warren Buffett stated that cryptocurrency is nothing but a bubble waiting to pop, also describing Bitcoin as “rat poison.”
Buffett explained the motive behind avoiding cryptocurrency market, adding that he would never invest a dime in any of over 2,000 different cryptos available in the market, saying that Bitcoin doesn’t actually have a real value, stating that the asset is “worthless.”
One of the wealthiest men in the world further continued to explain how the value of Bitcoin doesn’t exist given the fact that the cryptocurrency doesn’t have any type of product or physical value to offer, stating that the price of BTC in the market is only being determined by “how much is the next guy ready to pay for it,” also explaining how having many investors leaving BTC investment is resulting in major price dips in the market.
As far as Mr. Buffett is concerned, the bubble is about to burst, already at loss by billions of dollars in the course of the last year.
However, although Warren Buffett seems to have everything against cryptocurrency investments, it appears that the financial giant believes in investing in fintech.
Warren Buffett Invested Over 600 Million Dollars in Two Fintech Companies
Back at the beginning of November and the end of October, Warren Buffett appeared to have decided to invest in two fintech companies.
The two fintech companies received 300 million dollars each, while the investments were made through Berkshire Hathaway, Buffett’s multinational investment conglomerate.
The week before the investment hints turned up through operations of Berkshire Hathaway portfolio, it was announced that the conglomerate bought shares of a Brazilian payment processor, called StoneCo.
Will Warren Buffett Turn to Cryptocurrency Investing in the Future?
Berkshire Hathaway is better known for investing in insurance companies and top market cap major enterprises like Coca-Cola company, however, it appears that Buffett and the Berkshire Hathaway managers are going towards adding another investment interest to their portfolio by focusing on fintech and technology investing.
However, the fact that Buffett is adding technology and fintech sector investment to his portfolio might indicate that the technology and fintech market are maturing while offering more room for advancement and progress, which eventually brings profit.
Many crypto enthusiasts believe that the next step after fintech investments would be investing in cryptocurrencies, however, Buffett never mentioned anything about turning to cryptocurrency investments, despite showing interest in financial technology shares.
For now, the only obvious change of opinion, although Buffett never expressed his doubts in fintech sector, is adding financial technology and technology-based investments to the portfolio of Berkshire Hathaway.
Moreover, it is considered that Buffett still holds his ground concerning his statement that Bitcoin holds no actual value, hinting that cryptocurrencies are nothing but Ponzi schemes.
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