Warren Buffet is a legend on Wall Street, but every top investor gets it wrong sometimes. Years ago, investment legend called Bitcoin “rat poison squared” and according to Cointelegraph’s Yashu Gola, that has been a massive blunder. Gola calculated that Buffet missed out on a return of 320,000 percent.
‘Portfolio with rat poison is doing better’
Yashu Gola is not alone in disagreeing with Buffet when it comes to Bitcoin. Alpa Zeta also started calculating and came to a similar conclusion. Since 2014, a portfolio with only According to him, 2.5 percent of Bitcoin is 20 percent better than without it, which would also improve the risk profile.
Despite Bitcoin’s more-than-decent volatility, the digital currency’s correlation is low with stocks of Berkshire Hathaway, Microsoft, JP Morgan, and BlackRock, according to Alpa Zeta.
During the bear market from 2021 to 2023, a small allocation to Bitcoin could have prevented a 10 percent loss, according to Alpha Zeta’s calculations. Based on that, the analyst concludes that a small investment in Bitcoin is a good way for serious investors to protect their portfolio.
320,000 percent better than Berkshire Hathaway
Bitcoin proponents often refer to the digital currency as an alternative to traditional safe havens like gold, particularly due to its absolute scarcity of 21 million units.
That scarcity is drawing more and more people to Bitcoin to protect themselves against the devaluation of fiat money due to inflation.
The number of Bitcoin addresses with a positive balance has grown from 2,500 in 2009 to a whopping 45 million in 2023, according to Glassnode data.
That does not mean that there are by definition 45 million people with Bitcoin. After all, it is possible for an individual to manage multiple addresses on the blockchain.
Despite that growth and adoption, Buffet still calls out that Bitcoin is a gambling token and that the digital currency carries no intrinsic value.
