Bitcoin’s market value exceeds that of 47 of the 48 stocks in which Berkshire Hathaway invests. The price of the cryptocurrency should multiply by 2.85 to outperform the other company in the portfolio that Buffet manages.
The market capitalization of Bitcoin (BTC) exceeds 98% of the shares in which the company of billionaire Warren Buffett invests. Not even the sharp drop in price that the cryptocurrency recently suffered could change this fact.
According to a listing on the Companies MarketCap website, BTC is the ninth most valuable financial asset in the world. The value of the cryptocurrency exceeds 47 of the 48 stocks that constitute the investment portfolio of the Berkshire Hathaway company, which Buffett runs. These stocks include those of leading companies in their respective industries, such as Visa, MasterCard, Coca-Cola, Amazon, Bank of America, and Johnson & Johnson.
However, the pioneering cryptocurrency does not exceed Apple’s market capitalization, which is currently USD 2.12 trillion. At the time of writing this article, BTC is trading at around USD 39,800. Therefore, its price should multiply by 2.85 to reach USD 113 thousand per unit.
The price of the cryptocurrency could reach that milestone if the predictions of some analysts come true. They argue that Bitcoin’s bullish cycle has not ended and that its development is only halfway there.
It is not the first time that the price of the main cryptocurrency on the market has lost momentum. However, it has been able to not only return to its all-time highs but also exceed them after suffering its biggest drops.
Bitcoin Is More Valuable than the Company that Warren Buffett Runs
In January, BTC was more valuable than Warren Buffett’s company Berkshire Hathaway, which currently has a capitalization of USD 655 million. At the moment, it ranks as the 11th most valuable financial asset in the world, two positions behind the pioneering cryptocurrency.
Buffett has never held a good opinion about Bitcoin, which he has referred to as “a gambling device” and “rat poison squared.” He argues that cryptocurrencies “have no value and produce nothing” and he
Berkshire Hathaway’s Vice Chairman Charlie Munger has also been critical of BTC, which he considers to be “just insane.” He recently said that it “is disgusting and contrary to the interest of civilization.”
Other Institutional Investors Think Differently About the First Cryptocurrency
However, not all large institutional investors think the same way about the cryptocurrency that Satoshi Nakamoto created. For example, the purchase of Bitcoin by large companies exceeded USD 20 billion in 2020.
At the time of writing this article, the Bitcoin Treasuries list reports a total of USD 45.7 billion in institutional purchases. The appreciation of Bitcoin caused this amount to increase to USD 65.5 billion.
The main institutional investors that are betting on Bitcoin are MicroStrategy, Tesla, and Grayscale Bitcoin Trust. Ironically, Elon Musk’s electric car company owns a total of 43,200 BTC, equivalent to about USD 1.5 billion.
By Alexander Salazar
