Bitcoin Price Inches Closer to $30,000 after Proving Warren Buffett Wrong
The total market cap of Bitcoin reached $540 billion, more than Buffett’s Berkshire Hathaway as BTC gets closer to $30K.
Bitcoin, the world’s largest cryptocurrency reached a total market cap of $540 billion yesterday as the BTC price maintained its bullish momentum to reach $29,000. Bitcoin is now more valuable than Warren Buffet’s multinational conglomerate holding company, Berkshire Hathaway.
According to the latest data, Bitcoin price is currently hovering around $29,000, eyeing the important level of $30,000 on the last day of 2020. The price registered a significant jump this year as the world’s most valuable cryptocurrency gained more than 300% in 2020.
Warren Buffett, one of the most prominent investors in the US with a net worth of over $85 billion, called Bitcoin a ‘rat poison’ in 2018 and mentioned that the cryptocurrency is completely useless.
“When you’re buying nonproductive assets like Bitcoin, all you’re counting on is the next person is going to pay you more because they’re even more excited about another next person coming along. Bitcoin itself is creating no value at all,” Buffett said in 2018 during an interview with CNBC.
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Buffett is CEO of Berkshire Hathaway. The Nebraska-based holding company has a total market cap of $539 billion. Due to the recent price jump in Bitcoin, the total market cap of the cryptocurrency jumped above $540 billion to beat Berkshire Hathaway in terms of valuation.
Bitcoin and 2020
BTC has gained significant value this year, not only in terms of price but also in mass adoption. Institutional investors, including leading Wall Street firms jumped in with massive investments and accelerated the demand. Finance Magnates earlier reported that MassMutual, one of the largest insurance companies in the US invested around $100 million in Bitcoin. Additionally, leading investment management firms entered the cryptocurrency market to take advantage of the growing demand for digital assets.
Investors are curious about Bitcoin as the world’s largest cryptocurrency reached the highest level of search interest since February 2018 in December this year. Grayscale, the world’s largest crypto asset manager now has nearly $20 billion in crypto assets under management.
Does buffet not understand that scarcity in itself has a value. A 17th century painting doesn’t create value, its value is due to scarcity, and the knowledge that humans will enjoy this painting for many centuries to come. Take on the other hand a company it can be successful for some time, but sooner or later the management will take wrong decisions and the company loses its competitieve advantage and destroys its value. In any company valuation analysts try to predict the value of the first 5-10 years and then make an assumption on the terminal value. However the component… Read more »
I have respect for Warren Buffett and is ok if is not believing in a nonproductive asset like Bitcoin.
Wake up Chesatochi, pull your head out of the sand…Bitcoin is now more valuable than Berkshire Hathaway Stock !!! That means shareholders will begin dumping Berkshire Hathaway and purchasing Bitcoin !!!
Very soon BTC will reach K100 in value. Never underestimate the value of evolution, especially when it comes to technology and new generational changes, it is un evitable.
The value in bitcoin is the $2B worth of hashing hardware in a decentralized network that makes automating trust possible. Owning bitcoin gives you a claim check on this network to settle financial transactions and contract agreements without the use of expensive human intermediaries.
The old codger needs better advisors to explain this to him.
Mr. Buffett is wise to stick to what he understands. However, there are many stocks trading on stock exchanges for prices far exceeding their asset backing value. Investing in such stocks is no less gambling than investing in bitcoin.
While I have huge respect for Warren Buffet….he did invest heavily in Coca Cola. Now…you could argue that Coca Cola is a company that while contributing to Buffet’s wealth, it overall value is negative. It’s primary value is nebulous at best – a great branding capability, producing a drink that some people enjoy, but that has played a massive part in creating a Western obesity and Type II diabetes problem costing our health systems massively… not to mention shortening many people’s lifespans. Tasty…. but toxic. Makes Bitcoin look pretty innocuous by comparison. A big difference though is that Bitcoin is… Read more »