LAGOS (CoinChapter.com) — Warren Buffett is not new in the cryptocurrency industry as he has earned the reputation of an unrepentant crypto critic after repeatedly bashing Bitcoin as a worthless and risky speculative asset.
However, a new report has emerged claiming that the world’s most famous value investor secretly invests in Bitcoin. Notably, @CryptoTea_, through her official Twitter handle, alleged that Buffett, while publicly badmouthing Bitcoin, had secretly invested in the asset.
CryptoTea, in a Twitter thread, disclosed that Buffett and his business ally Charlie Munger were discreetly making hypocritical business moves. She noted that erstwhile businessmen were not being truthful in their purported stance towards the world’s leading digital assets.
Recall that Warren Buffett, who is often called ‘the Oracle of Omaha,’ called for a ban on cryptocurrencies at the annual meeting of Daily Journal Corp. Moreover, he openly declared his dislike for crypto assets and even called Bitcoin a ‘rat poison squared.’
“Cryptocurrencies basically have no value and they don’t produce anything. They don’t reproduce, they can’t mail you a check, they can’t do anything. And what you hope is that somebody else comes along and pays you more money for them later on. But then that person’s got the problem. In terms of value, zero.”
Warren Buffett said.
Warren Buffett Is Investing In Bitcoin Through NuBank
Hence, it is shocking that Warren Buffett might be indirectly dabbling in crypto despite his outright distaste for new-age digital assets. Reportedly, Buffett’s multinational conglomerate Berkshire Hathaway in the latter part of 2021, dumped a portion of its Visa and Mastercard holdings.
Interestingly, Buffett’s company invested in Nubank, a Brazil-based digital lender, after selling the stocks in the last quarter of 2021. According to a Securities and Exchange Commission (SEC) filing, Berkshire Hathaway invested $1 billion in Nubank.
Following the Oracle of Omaha investment, Nubank began buying Bitcoin with its reserves. His moves, according to CryptoTea, suggest that the billionaire isn’t truthful about his stance towards Bitcoin and other digital assets.
Moreover, this is not the first time that Buffett, through his Omaha-based conglomerate, has dabbled in the crypto market. Companies in which Berkshire Hathaway is invested have publicly adopted crypto, illustrating the facts in the Twitter user claims.
Recall that Nonbank financial companies (NBFCs) launched a cryptocurrency custody service last year.
Also, Bank of America started dabbling in cryptocurrency with the launch of a crypto research initiative. Moreover, BNY Mellon announced that it would hold, transfer and issue Bitcoin and similar cryptocurrencies for its asset-management clients. Notably, Warren Buffett is invested in all of them.
Bitcoin Outperformed Berkshire Hathaway
Additionally, the whistleblower indicated that Warren Buffett and his second in command, Charlie Munger, condemn Bitcoin because the leading digital asset has outperformed their own investment firm.
According to data from Statista, Bitcoin has outperformed Berkshire Hathaway remarkably in the last 10 years. Notably, Bitcoin, since its inception in 2013, has rallied by up to 400,000,000% as compared to Warren Buffett’s company which is up around 850,000% in its stock price since he took control.
According to Bloomberg, it is also worth noting that Buffett’s Berkshire Hathaway invested $340 into an alleged Ponzi-type scheme.
Federal investigators disclosed that DC Solar, the company which received Buffett’s backing, has used investors’ money to pay existing investors. Following that failed investment venture, it is important to ask that if Buffett failed to recognize a Ponzi investment, then he may also be wrong about Bitcoin.
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