Warren Buffet made a huge mistake with Bitcoin, says analyst
Investment legend Warren Buffett's famous statement about Bitcoin being "rat poison squared" is a huge mistake, according to Yashu Gola of Cointelegraph, as he has missed out on a 320,000% return. Another analyst, Alpa Zeta, supports the same idea and explains that a portfolio with even 2.5% Bitcoin has performed 20% better than one without.
The Rat Poison Portfolio 🐀— Alpha Zeta (@alphaazeta) April 20, 2023
An equally weighted portfolio of Berkshire Hathaway, Microsoft, JP Morgan and BlackRock
Guess what happens when we add #bitcoin to this portfolio?
Let's run the numbers pic.twitter.com/dIXoSLJlqS
Despite Bitcoin's volatility, it has a low correlation with major stocks. Bitcoin's absolute scarcity has attracted more investors to it as a hedge against inflation, with the number of addresses with positive balances growing from 2,500 in 2009 to 45 million in 2023. Buffett still calls Bitcoin a "gambling token" with no intrinsic value.
"People like to play the lottery," says Warren Buffett on the crypto craze. "It's appealing to the gambling instinct. We've had an explosion of gambling." pic.twitter.com/pjNEKdNgr1— Squawk Box (@SquawkCNBC) April 12, 2023