Berkshire Hathaway, whose owners called Bitcoin “rat poison,” is about to be displaced by the cryptocurrency in capitalization.
Warren Buffett, the famous billionaire investor, has been one of the loudest critics of bitcoin and cryptocurrencies amid the United States’ “war” against these digital assets. Earlier this year, Buffett dismissed bitcoin as a “gambling chip” in an interview with CNBC, saying that bitcoin “has no intrinsic value… but that doesn’t stop people from wanting to play roulette.”
With the recent price surge, Bitcoin threatens to knock the Berkshire Hathaway firm out of the top 10 in the market capitalization ranking. If this movement takes place, it would be one of the most notable victories of the digital currency against its detractors.
Berkshire is often considered an indicator of economic health due to the expansive nature of its businesses, which range from railroads to electric utilities and retail. Berkshire’s owners, legendary investors Warren Buffett and Charlie Munger, are highly hostile to Bitcoin. These big names in the financial world do not miss the opportunity to attack the digital currency, which they disparagingly describe as “rat poison squared.”
Either way, rat poison is now approaching investors’ signature in terms of market capitalization. During the last hours, the crypto queen exchanged 11th place with billionaire Elon Musk’s company.
Bitcoin Threatens to Drop Berkshire from the Top 10 in Capitalization
The high chances of a Bitcoin spot ETF on the stock market fueled a rally in the coin’s price. In just 5 days the digital asset rose by 20%, which led to the market capitalization reaching $675 billion dollars.
Currently, the price of the coin is falling slightly to $33,900. However, investor enthusiasm seems lit and the rally is expected to continue going forward. In fact, some analysts believe that the crypto market is at the beginning of a bull run.
In any case, the price of BTC does not need to hit a new all-time high to take out Berkshire Hathaway. Bitcoin’s threat to displace Warren Buffett’s firm is much closer, given that it has a capitalization of $738 billion. This means that rat poison has Berkshire in its sights, and the next step could be Meta Platforms. The latter is relatively close to the reach of the pioneer cryptocurrency.
Influence of Cryptocurrencies in the Financial World Grows
The impending approval of a Bitcoin spot ETF by the SEC would be a major event. With this, the cryptocurrency would be placed on par with the rest of the financial assets that make life on the American stock market.
In that sense, the theories of Bitcoin’s detractors seem to turn into unfounded attacks that are refuted by the facts. Even though Bitcoin faced problems with a prolonged bear market, the strength of the coin and its underlying technology proved it to be a top-ranking asset.
With a spot ETF, large capital will be able to legally flow into the digital currency market and benefit from it. Thus, the current moments could be seen as a turning point that will mark a new stage for the crypto sector. In this new direction, institutional investors would join retail investors for greater balance and maturity.
Against this backdrop, Bitcoin threatens to displace not only Berkshire, but several of its main critics.
By Leonardo Pérez
