Bitcoin Despiser Warren Buffett invests $500 million in a digital bank that offers cryptocurrency products Berkshire Hathaway, Warren Buffet's business, has made a $500 million investment in the parent firm of Nubank, a privately held digital bank that has been offering bitcoin investment products to its customers According to CNBC, Nubank is a Brazilian private bank that was created in 2013 and has over 40 million customers
The CEO of the company has indicated that an initial public offering is not currently planned, but it is a potential option in the future Buffett is a well-known bitcoin sceptic, having previously referred to the cryptocurrency as a "gambling device" and stated that it is useless because it does not generate anything A similar argument has been made by the investor against gold Late last year, the digital bank bought Easynvest, a digital investment platform The platform allows anybody to invest without paying commissions and provides users with access to bitcoin exchange-traded funds and products, such as 3iQ's QBTC bitcoin investment product
Berkshire Hathaway has previously made major investments in financial firms, with traditional banks and insurance companies accounting for a sizeable chunk of its portfolio However, by the first quarter of the year, Buffett had sold nearly all of his position in Wells Fargo Last year, the 'Oracle of Omaha' also invested in gold mining company Barrick Gold, although he appears to have sold his position in it a few months later Unlike enterprises or farms, gold and bitcoin are non-productive assets in the eyes of the investor When investors buy these goods, he claims, they are simply hoping that the next person would pay more for them, as the “asset itself creates nothing
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