Buffet's Dislike for Cryptocurrencies

Buffet, a prominent figure in traditional finance, is often known for his disdain towards cryptocurrencies despite his indirect involvement in crypto investments through his companies. Each time Buffet publicly addresses the topic, he consistently expresses his negative feelings towards cryptocurrencies. This prompts the question of whether Bitcoin (BTC) has already surpassed him in terms of financial performance.

Berkshire Hathaway's Decline

On June 3, the shares of Berkshire Hathaway experienced a significant 99% drop. This decline was a result of a technical issue on the New York Stock Exchange (NYSE), causing a stir at that moment. Trading in several major stocks was halted to resolve the problem. Prior to the market closure, the NYSE declared that all transactions affected by the technical glitch would be invalidated.

Berkshire Hathaway vs. Bitcoin

Since 2015, Berkshire Hathaway's shares have seen a nearly 100% decline compared to Bitcoin. While the 99% drop mentioned earlier was attributed to a technical glitch, the weekly performance chart of BRK.A and BTC/USD indicates Bitcoin's success in terms of price.

An analysis from the Nakamoto Portfolio simulator suggests that allocating just 1% of Berkshire Hathaway's portfolio, including shares of renowned companies like Apple, Bank of America, and American Express, to Bitcoin (BTC) could have potentially increased the 5-year gain from 214% to 240%. With a higher allocation of 5% to BTC, the gain could soar to 328%.

Despite Buffet's continuous criticism, the total market value of Bitcoin has skyrocketed to approximately 1.3 trillion dollars, exceeding the valuation of Berkshire Hathaway, which is valued at less than 900 million dollars. Bitcoin has even surpassed the 1.2 trillion dollar valuation of the social media giant META. Buffet's longstanding comment that he wouldn't spend even a small amount on BTC due to its perceived lack of value is noted.

In comparison to Gold, valued at 15.8 trillion dollars, Bitcoin presents significant potential for growth. The comparison of the first-quarter performances of the Gold ETF in 2004 and the BTC ETF in 2024 further emphasizes this point. In the digital age, trust in the Bitcoin network, which consumes more energy than multiple countries, may overshadow confidence in the traditional yellow metal.