Warren Buffett buys gold and this will fire Bitcoin to $ 50,000
2 min readlegendary investor Warren Buffett sold shares of American banks and began buying shares in a company that mines gold. So he indirectly invested in this precious metal, which surprised many very much. Warren is known for his aversion to gold. So people logically started to speculate if he will try Bitcoin. In the current crisis, it also acts as a safe haven.
Max Keizer, founder of Heisenberg Capital and an early Bitcoin investor, said that Warren’s investment in gold could send Bitcoin up to $ 50,000.
What does Warren’s surrender in the banking sector say about Bitcoin?
Warren Buffett sold shares of the US bank Goldman Sachs at a time when it had the highest trading volumes in history. In the second quarter of 2020, $ 13.3 billion flowed through it. This shows that Warren is unsure of the long-term potential of bank investment and does not trust the dollar.
Instead, he bought shares in Canadian mining company Barrick Gold, whose shares faithfully replicate the movements of gold. The company’s shares have risen by 45% in the last year. Following an investment by Berkshire Hathaway (Warren’s investment firm), its shares gained an additional 8.11%.
Buffett’s investment in gold is bullish for Bitcoin
Max Keizer claims that this Warren investment is extremely bullish for Bitcoin as well. According to him, the positive sentiment around gold also helps cryptocurrencies. After all, it is not for nothing that Bitcoin is referred to as digital gold.
There are about $ 100 trillion in the world. Less than 1% of this capital is held in gold. After Buffett began to move capital to gold, expect a 5% AU allocation, which will send the price of this precious metal to $ 5-10 thousand. Also expect 1% of the world’s wealth to go to Bitcoin, bringing its price to $ 50,000.
The founder of the Ikigai Fund has a similar opinion and mentioned Warren Buffett’s controversial statement from 1998, when he stated that gold has no use:
It was announced today that Berkshire Hathaway bought gold shares for the first time in history. The reasons are clear. And if you’re thinking about what it will be like with Bitcoin, remember what Buffett said about gold in 1998.
In the past, Buffett has spoken of Bitcoin as well as gold, claiming that it has no use and inherent value. However, his latest investments suggest that he is beginning to reconsider his opinion.
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