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How Warren Buffett Made a Fortune from Bitcoin and Crypto?

Bitcoin, Crypto, FinTech, Investment, Nubank, Warren Buffett

Warren Buffett, the legendary investor and billionaire, has been a vocal critic of bitcoin and crypto for years. He has called bitcoin a “gambling token” and “rat poison squared” and said he would never own any. However, a recent analysis of his stock portfolio revealed that his best-performing investment this year is a bitcoin and crypto-friendly bank.

According to Business Insider, Buffett’s Berkshire Hathaway invested $500 million in Brazil’s Nubank in June 2021, before its initial public offering (IPO) later that year. He then added another $250 million during the IPO, bringing his total stake to $750 million. Since then, Nubank’s stock price has soared over 100%, making Buffett’s holding worth around $840 million.

Nubank is a digital bank that offers various financial services, including the ability to trade bitcoin and other cryptocurrencies. It also launched its own cryptocurrency called nucoin earlier this year, which rewards customers for using its products and services. Nubank has over 40 million customers in Brazil and other Latin American countries and is one of the largest fintech companies in the world.

Buffett’s investment in Nubank is surprising, given his negative views on bitcoin and crypto. He has repeatedly dismissed them as unproductive assets that have no intrinsic value. He has also warned investors to stay away from them, saying they are risky and speculative. His longtime partner, Charlie Munger, has also slammed bitcoin, calling it “the stupidest investment I ever saw” just last week.

However, Buffett’s Nubank bet shows that he is not completely blind to the potential of bitcoin and crypto. He may not like them personally, but he recognizes that they are attracting millions of users and generating huge revenues. He may also see Nubank as a way to tap into the fast-growing fintech market in Latin America, where many people are unbanked or underbanked.

Buffett’s Nubank investment has outperformed his other holdings, including giants like Amazon, Apple, Coca-Cola, Bank of America, and Kraft Heinz. It has also outperformed the bitcoin price, which has risen about 70% this year. However, it is still unclear whether Buffett will hold on to his Nubank stake for the long term or sell it for a profit.

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