Warren Buffett wants to profit from the work of miners: not Bitcoin (BTC) miners, but gold miners for now. However, Buffet was not kind to gold a few years ago; the legendary investor, however, now considers the yellow metal as a solution to the effects of COVID-19.
Warren Buffett takes part in the gold rush
The conglomerate Berkshire Hathaway of Warren Buffett, proceeded to the liquidation of its shares in several financial institutions.
Berkshire Hathaway would have closed its positions within Goldman Sachs and would also have sold substantial parts of its shares in JPMorgan Chase, Wells fargo and PNG : this announcement occurs while Goldman Sachs posted a record profit estimated at $ 13 billion in the second quarter of 2020.
According to information relayed by Fortune magazine, the strategy adopted by Buffett is clearly to minimize the investment of its funds in the industries most affected by COVID-19: the airline industry, the fast food industry and the banking sector.
Buffett would have proceeded in parallel with the acquisition of a single new asset: the shares of the mining company, Barrick Gold, based in Canada. The price of their shares has registered a price increase of 45% during this year.
Buffett will soon turn to Bitcoin: the proof!
According to observers, the decision to Buffett could indirectly lead to a further improvement in the price of Bitcoin : Max Keiser commented that this positive perception around gold implies an increase in the value of the cryptocurrency, which could take its price to $ 50,000.
Source : Image via Twitter
The founder ofIkigai Fund, Travis Kling, shares the same opinion as Keiser and added that ironically, Buffett had issued a negative opinion on gold in 1998: the position of Buffett facing Bitcoin, is similar to the one it had on gold 20 years ago.
Recent statistics show a positive correlation between the precious metal and the cryptocurrency during the last 4 months: investors seem to consider BTC and gold as two safe havens with increasingly similar characteristics.
Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.
I may be repeating myself, but Bitcoin doesn’t need Warren Buffett to be successful. This one is also more of a follower than a leader: he will probably invest in Bitcoin the day BTC reaches or exceeds the price of gold but, we should not expect that it will serve as a leverage at the price of Bitcoin. Bitcoin, the new El Dorado: it needs new heroes, the old ones having become zeros.
Litecoin, welcome in the Silver Age