Big crypto critic invests a billion dollar in a crypto-friendly Bank

Crypto ecosystem has attracted several proponents with its tremendous potential. Simultaneously the industry also faces notable criticism across the globe. Where many billionaires found digital currencies like Bitcoin a safe haven for their funds, Warren Buffet believes that such assets are nothing more than rat poison. However, recently it is unveiled that the biggest critic in the industry has invested a billion dollars in Nubank. Notably, Nubank offers crypto-focused services, and is located in Brazil.

Berkshire Hathaway acquires $1B worth shares of Nubank

Berkshire Hathaway, the firm of Warren Buffet, has recently obtained a billion dollar worth of shares of Nubank. The bank focuses on crypto and blockchain-based services, and is the largest of its kind in Latin America.

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The investment news was unveiled following the latest filing made with the US Securities and Exchange Commission (SEC). Notably, Berkshire Hathaway made the SEC filing earlier this week.

Nubank is not similar to the traditional mainstream banking infrastructure. While comparing with other banks, we have observed that Nubank allows crypto in its transactions and offers products like BTC exchange-traded funds (ETFs).

Warren Buffet is a bigger crypto critic

The billionaire investor, often called the “Sage of Omaha” has several times underestimated the true potential of virtual assets. Moreover, he also had depreciated the cryptocurrencies several times, by calling them an unproductive investment that has no unique value.

Besides, Charlie Munger, the Vice President of Berkshire Hathaway and also Buffet’s partner is one who doesn’t refrain from publicly criticizing the crypto ecosystem. Recently, he underscored that it might be good if the cryptocurrencies had never been invented and even observed he would not prefer a cryptocurrency trader to get married in his family. 

Furthermore, Munger hates the leading cryptocurrency and supports China’s decision to ban such assets. In the Q&A session of the investing firm last year, Munger highlighted that the coin designed by Satoshi Nakamoto is disgusting and contrary to the interest of civilization, as it is used in online crimes.

Berkshire had previously invested $500M in Nubank

Although Berkshire’s owners have long criticized the crypto market, the investment firm did not invest in Nubank for the first time. The multinational holding had already acquired $500 million worth of shares a few months before it held its IPO in December.

As Buffet continues to invest in cryptocurrencies from last year, it has also dropped some other options on the list. Notably, in the recent filing with the US SEC, Berkshire revealed that it dropped more than 3 billion of its investments from Mastercard and Visa.

However, experts in the ecosystem believe that the opportunity to invest in a different type of financial services provider has changed the minds of these critics.