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Although the prominent US investor Warren Buffett has never been a fan of gold in the past, he recently made a sizeable investment in Barrick Gold Corp while reducing his exposure to his favorite sector, banks.
Similiar with gold, Buffett has been bashing âthe new gold,â Bitcoin, and this raises the question of whether he may change his mind on the primary cryptocurrency at some point in the future.
Buffett Sells Banks, Buys Gold Instead
The soon-to-turn 90-year old chairman and CEO of Berkshire Hathaway have never displayed any favoritism regarding gold and its role as an investment tool.
In his 2019 letter to Berkshire Hathawayâs shareholders concerning an upcoming financial apocalypse, Buffett refers to the ones planning to accumulate gold as a hedge instead of making investments in âAmerican businesses,â their portfolio would be much smaller:
âAnd what would that supposed protection [gold] have delivered? You would now have an asset worth less than 1% of what would have been realized from a simple unmanaged investment in American business. The magical metal was no match for the American mettle.â
Warren Buffett. Source: BusinessInsider
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Buffett focused on investing in numerous other aspects of the traditional financial scene, including substantial investments in the banking sector. Now, however, his strategy may be changing tides as Berkshire significantly reduced its stakes in JPMorgan Chase & Co and Wells Fargo & Co.
Although he recently doubled-down on his Bank of America shares, he also sold most of his Goldman Sachsâ. Bloomberg added that Berkshire reduced stakes in other financial firms as well.
Instead, Buffettâs investment company took a more âcautiousâ approach and purchased a massive share in Barrick Gold â a leading mining company producing gold and copper in 13 countries.
According to David Kass, a finance professor at the University of Marylandâs Robert H. Smith School of Business, this step from Berkshire comes as âthe biggest shockâ from the companyâs Friday filing.
Could Buffett Open His Mind For Bitcoin?
Another asset, quite similar to gold in terms of fixed supply and recent price movements that Buffett hasnât been fond of, is Bitcoin. Previously, he had referred to the primary cryptocurrency as a ârat poison squared,â and a âgambling device,â and even a lunch with Justin Sun, CEO of TRON, and other leading crypto figures couldnât change his mind.
But what if the American investor somehow changes his attitude about Bitcoin like JPMorgan CEO Jamie Dimon did? And, what if Buffett starts allocating funds into the primary cryptocurrency, like Paul Tudor Jones III and MicroStrategy did?
Such a drastic change of heart could not only push BTCâs price into the stratosphere but also start a snowballing effect that will ultimately enhance the assetâs adoption rates among the masses.
Max Keiser: Buffettâs Panic Buying At $50K
Heisenberg Capital founder Max Keiser told CryptoPotato that Buffett has missed out on numerous prosperous investments such as Apple and Amazon as âhis timing is poor.â At the same time, Buffett âshunned Gold for 20 years while Gold outperformed Buffett for 20 years.â
As such, Keiser asserted that Buffett and another Bitcoin basher â Peter Schiff â will eventually catch on with BTC and start accumulating.
âMy guess is that Buffett (or whoever takes over after he passes) will start panic-buying Bitcoin at $50,000, just like Peter Schiff will do.
The only major player in the money management business that knows what theyâre doing is Paul Tudor Jones who I expect will take his Bitcoin allocation up from the current 2% of the portfolio to 10% in the near term.â
The post Max Keiser: Warren Buffett Will Start Panic-buying Bitcoin at $50,000, Just like Peter Schiff appeared first on CryptoPotato.
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