People still have mixed opinions on cryptos today. One of the most adamant anti-crypto personalities is Warren Buffet. He speaks of the crypto market and even compared it to rat poison. In his view, it is nothing but a scam and a bubble altogether. He shares the same opinion as Bill Gates who even went to the extent of saying that he would short on Bitcoin if he could. But according to recent reports, did Warren Buffet actually have a change of heart?
There was a report that Warren Buffet decided to invest $600 million in two large fintech companies. Each company received $300 million from Warren Buffet’s investment conglomerate—Berkshire Hathaway. Though he never admitted this move, this is considered big news since many believe that Warren Buffet is already joining the crypto market.
The details of this investment are still unknown though. So far, it is believed that Todd Combs, one of Berkshire’s two portfolio managers is in charge. And also, it seems that the move was planned for some time. Berkshire also reportedly bought $300 million stakes of Paytm which is the largest mobile payments service provider in India.
Though the move to purchase Paytm didn’t really make so much suspicion within the crypto community, Berkshire’s second largest investment did raise some flags. The latest one was made last week and bought shares in an IPO for StoneCo which is a Brazilian payments processor. Now, looking at the history of Berkshire, it is quite unusual considering that they only invest in companies such as Coca Coola and even goes for acquisition of insurance companies.
Outside His Area of Expertise?
Buffet already mentioned that technology investments are beyond his area of expertise. And this is also the reason why he never wanted to aim towards the industry. However, though this might be true, Warren Buffet is working with Berkshire portfolio managers that have a different view of blockchain. And since they have decided to enter the fintech sector, it is possible that they already considered the maturity of the industry.
Is Crypto Investment Next?
Is Warren Buffet ready to go beyond the fintech sector and go for cryptocurrencies? Come to think of it, there are already institutional investors that are now going after the crypto market. You have the likes of ICE, Goldman Sachs, and even Fidelity. These are signs that the market is maturing. Bitcoin, over the last weeks, is showing signs of stability.
This could be a good thing. In fact, it has been discovered that Bitcoin is now less volatile than tech-related stocks such as Amazon and Netflix. It is also possible that Bitcoin is now the cryptocurrency of choice for many investors. Even Tom Lee of Fundstrat is pleasantly surprised by Bitcoin’s stability.
Could it be possible that this move is a sign of things to come for Warren Buffet? Though there is still no official confirmation, we can all be hopeful that Berkshire is ready to expand the horizon of their portfolio and go for crypto investments. If this is the case, it is definitely big news considering how much Warren Buffet has opposed the idea of investing in cryptocurrency.
