Month: September 2020

Since the inception of Bitcoin, it has been a point of debate among users and non-users. With time it has seen the tremendous value increase, yet experts and users await one more increase. It may be seen in the coming days ahead now. Bitcoin is struggling to hold above the $12000 mark, and investors are eagerly waiting for breakthroughs in the markets. However, the good news is that the market cap has crossed $386.4 billion. This level was last seen only in 2018.

There are many reasons for the slow growth in this field. The lack of regulatory guidelines is the main factor stopping big investments from coming into this market. Apart from that, the investor perception about cryptocurrencies, in general, is still not so positive, and this is also leading to a lack of retail participation in the markets.

Experts believe that there will be ups and downs in the price as markets turn volatile due to various reasons. However, there is good potential in the long run. Yet another factor that is stopping the regular retail investors from getting into active trading in cryptocurrencies is the sharp spikes that are regularly seen in this market.

Due to the ongoing coronavirus pandemic, the governments have issued various stimulus packages, and this has contributed to the decline in dollar value. The US dollar index currently stands at 93.2. The social tensions that arise due to a slow economy have forced the governments to print dollars in order to find temporary solutions. This has forced veteran investors like Warren Buffett to stay away from banking and financial stocks.

Even though the performance of BTC is not up to the expected mark, other cryptocurrencies have had good growth this year. The ETH has grown from $105 to $440 since March, and investors have made a lot of money with this asset. In the same manner, Ripple and Dash are also performing well when compared to other assets in the market.

The future of Bitcoin and other cryptocurrencies look bright as we are heading into a high inflation market, which can be seen shortly. In this situation, many people will look towards assets that can tackle inflation in the long run. However, access to digital wallets has to be eased in many countries in order to get a large number of retail investors in the future.

Buffett bought gold, so Morgan Creek’s digital co-founder Jason Williams believes that Buffett will surely buy a button, if not him the young employees in his investment farm will surely will. Warren Buffett is the business tycoon and an investor based in America will buy bitcoin shortly, Jason Williams made a tweet about this on Aug 15, 2020. The tweet was in context to the fact that the billionaire Buffett had invested quite large and this made Jason tweet.

Changes in the Portfolio of Berkshire Hathaway

There have been some recent changes in the scenario to the portfolio of Berkshire Hathaway. This change has attracted eye of every investor currently. The changes were noticed because the CEO and chairman of this company is none other than Buffett.

The changes noticed were,

• The firm sold bank stokes
• Airline stocks

This incident was reported by Fortune, where on one hand, they sold the sticks and bought something bycatch they bought from Barrick Gold, a mining company based in Canada. The most amazing thing is, their stock value is correlated to that of gold. The company willingly sold “Goldman Sachs” Stock which resulted in their fall by 61% in the JPMorgan chase. They also sold some of the PNC holdings and Wells Fargo holdings.

According to the market whispering, Buffett is anticipating the increasing loan defaults which are the direct result of the coronavirus pandemic. This is affecting the banks highly, the economy has taken a standstill and is continuously moving downwards. Initially, the step is surprising because Buffett was always negative about the cryptocurrencies but this sudden step, has taken the industrialists aback. He mentioned some time back that, “cryptocurrencies are probably rat poison squared”.

Summary

This is the most unlike Buffett according to every investor and this act surprised Williams, the tweet is the result. Jason Williams made it clear that Buffett might not buy bitcoin but his employees will surely do. Buffett’s actions are important because his investments in gold can push bitcoin’s price to $50,000. If you keep a positive approach towards gold, bitcoin will surely be able to raise its position. The astonishing fact is that bitcoin has been outperforming gold since April. This suddenness of the uprising and Buffett’s actions has left us with various speculations, the most important of which is ” he might be acquiring bitcoin”!