Bitcoin No Longer Rat Poison? Warren Buffett-Backed Nubank Unveils Crypto Trading
It appears that the rising popularity of Bitcoin and other cryptocurrencies — despite the continuous carnage on the broader crypto market — has caused one of the greatest investors of all time, Warren Buffett, to change his mind.
The 91-year-old investor was asked on May 2 at the annual Berkshire Hathaway shareholders meeting if he had changed his notoriously harsh opinions on bitcoin or cryptocurrencies.
“If you had every bitcoin in the world and offered it to me for $25, I would not accept it,” Buffett stated. ” Because I would have no use for it I will have to sell it back to you in some capacity. It isn’t going to do anything.”
At the same annual shareholders meeting in 2018, Buffett referred to bitcoin as “possibly rat poison squared” and cautioned investors against investing in it.
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Warren Buffett called bitcoin a poison for rodents, "squared". (YouTube grab)
A Change Of Heart?
Fast forward May 13, Nubank — one of the world’s largest digital banking platforms backed by (surprise!) the “Oracle of Omaha” himself Mr. Buffett — has launched cryptocurrency trading.
Beginning with bitcoin and ether, the bank claimed that its 54 million users may “purchase, hold, and trade digital assets from the same app” without having to register new accounts or transfer funds.
Currently, Nubank is accessible in Colombia, Brazil, and Mexico. In addition, they have begun offering the cryptocurrency trading service in Brazil.
Users can begin Bitcoin and Ethereum trading for as little as $0.2. And since no new accounts are required, the barrier to entry for bitcoin and other related tokens is further lowered.
Full Bitcoin Access
It is anticipated that by the end of July 2022, all Brazilian users would have complete access to cryptocurrencies via Nubank. In addition to offering more crypto alternatives in the future, they intend to educate customers on crypto through a variety of sites.
BTC total market cap at $558 billion on the daily chart | Source: TradingView.com
Nubank is a so-called neobank, a type of lender that works outside the standard banking system’s regulations.
NuInvest, the investing division of the “crypto-friendly” digital bank, allows users to invest in a Bitcoin exchange-traded fund (ETF), giving them access to a financial sector that Berkshire’s leaders have showed little interest in.
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According to various sources, cryptocurrency infrastructure provider Paxos would supply the essential trading and custody services for Nubank’s offering.
Buffett has opposed Bitcoin for a long time. In 2018, he told CNBC that “they will come to a disastrous end” and that Berkshire Hathaway “would never own a stock in them.”
Featured image from Financial Express, chart from TradingView.com