It goes without saying that while many would be supportive of cryptocurrencies and the benefits that blockchain technologies can and often have provided us, there are nevertheless others who remain adamant in the opinion that cryptocurrencies cause nothing but trouble and end up doing more harm than good. Legendary business investor Warren Buffet is one such person who has gone on the record several times in the past to voice his anti-cryptocurrency stance on a number of different occasions. He had even gone as far as to call the cryptocurrency industry ‘disgusting’ and that Bitcoin (BTC) has no intrinsic value or real-world application at all.
It is exactly because of Warren’s stance on cryptocurrency that the latest development surrounding Berkshire Hathaway, of which the investor is both the CEO and Chairman, is so baffling to many both inside and outside of the cryptocurrency community. This is because Berkshire Hathaway has now invested $500 million in Nubank’s parent company. Nubank is a digital bank (privately held) that has been continuously offering its users a wide variety of products related to crypto investments.
Buffet changing his mind about crypto?
Nubank had been founded back in 2013 and is currently based in Brazil. It has approximately 40 million customers. Of course, the substantial investment of $500 million is certainly notable, mainly because Warren has been so spiteful of cryptocurrencies in the past and had called the crypto industry a ‘gambling device’. His hatred was not exclusive to cryptocurrencies either, as he had more or less said the same thing about gold.
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Still, this did not stop the digital bank from obtaining Easynvest, which is a platform that focuses on digital investments similar to Nubank. This acquisition had taken place towards the end of last year. Simply put, the platform enables its users to be able to make investments without the need of paying any commissions. It also allows the users to access Bitcoin ETFs and related products, which include the QBTC investment product by 3iQ.
Berkshire making significant investments
Berkshire Hathaway has managed to make considerable investments in various financial firms and companies in the past. Of these, traditional insurance firms and banks had made up a substantial part of the investment portfolio.
In related news, it had been during the year’s 1st quarter that Buffet had actually also sold off the entirety of his total stake in the highly popular financial services company, Wells Fargo.