Investors speculate that Warren Buffet’s plan to buy a gold mining company will positively impact Bitcoin’s price. Berkshire Hathaway, one of the conglomerates led by Warren, sold bank stocks to obtain a Canadian gold company Barrick Gold. The shares sold were for Goldman Sachs. According to Max Keiser, who is an iconic Bitcoin investor, suggests it may boost the value of BTC to 50K.
Berkshire Hathaway gathered from its quarterly filing that Buffet had cut its shares from major banks. It has also sold a large number of shares from JPMorgan Chase, PNG, and Wells Fargo.
The move came as a surprise to everyone after Goldman Sachs just recorded one of the highest quarterly trading revenues of $13.3 billion. The move prompted Berkshire to close its position in the bank completely. That is an indicator that gold may be better than the banking industry as a whole.
Buffet’s new investment is in Barrick Gold, whose values still reflect other gold values in the market. This is a Canadian gold mining company that has so far enjoyed a 45% profit to date. The cost of the stock increased by 8.11% just after Buffet joining the band.
According to Max Keiser, who has a vast experience with Bitcoin, his investment will increase the value of gold, which will spill over to Bitcoin’s value. Bitcoin has, in many cases, compared to be digital gold, so they are more of the same class.
He indicated that Buffet’s investment to gold would increase the allocation of gold by an average of 5%, which may affect Bitcoin by 1%.
Travis Kling, Ikigai Fund founder, and former L/S equities portfolio manager, agreed with Buffet’s sentiment. He referred to the skeptic’s Buffet had about gold 1998. He mentioned that Hathaway’s move to buy the first gold stock is historic, even for Bitcoin.
When we compare gold and Bitcoin, Bitcoin has outshined gold early in the year, but so far, there is a correlation of price between the two.
Since the global market crash, many investors are switching to Bitcoin as a store of value. This is evident as MicroStrategy also joined the band by buying bitcoin worth $250 million – the firm decided to use it as a treasury asset.
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