American businessman and stock investor Warren Buffett’s Crypto Bet has been demolished by the outperformance of Bitcoin this year.
Bitcoin is Beating Warren Buffett’s Crypto Bet in 2023
Over the past few weeks, the financial world has been reeling from a series of bank collapses, starting with Silicon Valley Bank. While this shook confidence in the stock market, it could have been good news for crypto investors. And so it was, with the bank collapses, the crypto market has seen noticeable gains.
Investors are turning away from the stock market crisis and turning to crypto exchanges. The price of Bitcoin has risen nearly 55% since the start of the year, shaking up Buffett’s Bet.
Buffett’s Bet
Buffett, known to many as one of the greatest investors of the 20th century, has a negative attitude toward the crypto market. NuBank, traded as NU on the Stock Market, has only risen 26% this year. In addition, Coinbase (COIN), in which Ark Invest CEO Cathie Wood also invested, has risen more than NuBank.
Warren Buffett Prefers to Stick to His Investments
NuBank is a stock in which Warren Buffett has invested a total of 1.5 billion dollars under the name of Berkshire Hathaway, his investment company. Nubank, which has lagged behind Bitcoin and many stocks this year, has provided crypto trading services through Nukripto in the past. Given Warren Buffett’s attitude towards crypto, this situation was strange to many people.
The decline of NuBank in those years did not worry Buffett, and he decided to protect his investments.
Is Crypto Better than the Stock Market?
From the past to the present, the rise in the cryptocurrency market, especially Bitcoin, has been incredible. The crypto market, which we can characterize as better than the stock market in terms of profitability, has also been exposed to many declines.
Since its launch, NU stock has fallen by more than 50%. However, Bitcoin fell by a maximum of 44% during the period when NU stock was declining. While other stocks have experienced similar declines, Bitcoin has shown a relatively more solid stance.
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