Super investor Warren Buffett is changing course. Will Bitcoin benefit from this?
Warren Buffett is arguably one of the most successful investors too. As every Bitcoin investor knows, he is also a stated opponent of Bitcoin (BTC). Previously, he was also not enthusiastic about gold as an investment. There he is now making a surprising move. Does this affect Bitcoin? We will outline the matter.
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How did Warren Buffett change course?
Warren Buffet was always critical of investing in gold as an investment. For example, it was written in the 2011 annual report that gold is no longer worthy and there is no increasing demand for gold for industry (page 18 of the annual report ). Now the second quarter 2020 report shows that Warren Buffett has converted his investments in financial institutions (such as banks) to investments in gold.
That this was profitable was shown fairly quickly. The price of gold rose to a record high after the second quarter. Now that this announcement has become known, it is expected that many more people will go after Buffett and also invest in gold.
What does Warren Buffett’s gold rush mean for Bitcoin?
First, Warren Buffett is a stated opponent of Bitcoin (BTC) because he doesn’t understand the technique. He now shows that an opposition at one moment does not mean that he will not get in at a later moment. If Buffett ever decides to enter the crypto market, this will attract many new investors to the crypto market. However, another benefit of this step for the Bitcoin is much more concrete. Cryptobull Max Keizer aptly explains this in a Tweet.
In short, he taps into the correlation between the gold price and the price of Bitcoin (BTC). Due to the increasing interest in gold, he expects that many people will also step into Bitcoin (BTC), causing the price of the BTC to rise in the short term.
How are the crypto markets responding?
At the time of writing, the crypto markets don’t seem impressed yet. The live price of the Bitcoin and the rest of the crypto coins, which you can find here 24 hours a day can follow , remains fairly neutral at the time of writing. Are you considering investing in Bitcoin yourself? Then view the site of the cheapest crypto exchange in the Netherlands , Bitvavo.