Warren Buffett, a well-known skeptic of Bitcoin, has never shied away from expressing his disapproval of the crypto industry. Despite its current value of $69,000 and market expectations of reaching over $100,000, Buffett’s negative stance on Bitcoin remains unchanged.
In 2018, Buffett famously stated, “In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.”
However, not all of Buffett’s followers adhere to his beliefs. Berkshire Hathaway, the company he heads, has taken a different approach. In 2021, one of his advisors increased their stake in Nu Holdings (NYSE: NU) – the parent company of Nubank, a leading Latin American digital-first bank. This indirect investment of $1 billion in Nubank serves as a testament to Berkshire Hathaway’s confidence in the potential of digital banking and cryptocurrency services.
Founded in 2013 by David Velez, a seasoned entrepreneur, Nubank has revolutionized the Latin American banking sector with its digital-first approach. The company has quickly gained a massive customer base by offering affordable financial services, challenging the traditional banks’ high fees.
One of Nubank’s innovative products, Nucripto, will soon allow users to trade in various cryptocurrencies, including Bitcoin and Ethereum. Within its first month, Nucripto attracted over a million users, showcasing its potential impact in the region’s digital currency market.
Although Nubank’s primary revenue comes from conventional financial products, its foray into the cryptocurrency space positions it as a key player in Latin America’s digital economy. The company’s introduction of its own digital currency, Nucoin, and the inclusion of popular cryptocurrencies like Polkadot and Avalanche highlight the growing influence of the region.
Nubank may not align with Buffett’s financial ideology, as he has famously avoided investing in technology stocks and has a long-standing relationship with traditional banks. However, Berkshire Hathaway’s stock ownership in companies like Bank of America, Citigroup, and Wells Fargo serves as a testament to their belief in the potential of the financial industry’s transformation through digital services.
