Warren Buffett’s Berkshire Hathaway has fallen 99% against Bitcoin since 2015.
On June 3, Berkshire Hathaway’s stock, BRK.A, suffered a dramatic and brief decline due to a technical glitch on the New York Stock Exchange (NYSE). The glitch appeared to cause Berkshire stock to fall nearly 100%, and the NYSE halted trading in several high-profile stocks to address the issue.
As trading neared the close, the NYSE announced that it would immediately cancel erroneous trades resulting from previous technical glitches. Nonetheless, this entire episode has drawn the market’s attention to the fact that Berkshire Hathaway’s stock has collectively underperformed Bitcoin (BTC) over the past decade without any flaws.
Berkshire Hathaway is down nearly 99% against Bitcoin.
Berkshire Hathaway’s stock has plummeted nearly 100% in value relative to Bitcoin since 2015, from about 1,000 BTC to 9.15 BTC.
Interestingly, BTC’s performance against BRK.A and its top stock holdings stands in stark contrast to Berkshire Hathaway owner Warren Buffett’s critical views on Bitcoin. He once famously described it as “rat poison squared.”
According to results from the Nakamoto Portfolio Simulator, incorporating just 1% of Bitcoin into Berkshire Hathaway’s existing portfolio, which holds top stocks such as Apple, Bank of America, and American Express, increased returns from 214% to 240% over five years. could increase. -Year adjustment period.
Meanwhile, allocating 5-10% of your portfolio to Bitcoin could have achieved impressive returns of 328-410% for Warren Buffett over the same period.
Berkshire Says Bitcoin Is More Valuable Than Meta
Buffett’s resilience on Bitcoin hasn’t stopped the cryptocurrency from becoming one of the most valuable assets in the world.
As of June 4, Bitcoin’s net market capitalization was approximately $1.36 trillion, making it the world’s ninth-largest asset by valuation. Interestingly, BTC is ahead of Meta Platform and Berkshire Hathaway with market capitalizations of $1.2 billion and $899.36 million.
Bitcoin’s value is likely to increase in the coming months and years as it gains attention as an alternative safe haven to gold, which currently has a market capitalization of $15.8 trillion.
Related: Bitcoin Volatility Plunges Below Tesla, Nvidia Stocks Amid $100,000 Price Prediction
For example, the price of gold, like Berkshire Hathaway stock, has fallen more than 99% compared to Bitcoin since 2015.
According to veteran trader Peter Brandt, Bitcoin is poised to grow by 230% and hit a new high of 100 ounces of gold per BTC. In doing so, the cryptocurrency could next surpass silver’s market capitalization of $1.68 trillion.
This article does not contain investment advice or recommendations. All investment and trading activities involve risk and readers should conduct their own research when making any decisions.
