Warren Buffett’s Crypto Contradictions: A Legacy of Skepticism Amid Shifting Tides
120min read In the ever-evolving landscape of finance, few figures hold as much influence as Warren Buffett. Yet his longstanding dismissal of cryptocurrencies has become a point of debate, particularly as Berkshire Hathaway’s investments quietly edge closer to the crypto ecosystem. While Buffett’s public stance remains unchanged—calling Bitcoin “rat poison squared” and dismissing it as a “gambling token”—the company’s financial moves since 2024 suggest a tension between rhetoric and reality. Let’s unpack the nuances of this paradox.
Ask Aime: What's Warren Buffett's crypto stance amid Berkshire Hathaway's investments?
The Unwavering Stance: Buffett’s Public Position
Buffett’s skepticism has been consistent since his 2018 “rat poison” quip. In 2024, he doubled down on his criticism, reiterating that cryptocurrencies lack intrinsic value and are prone to speculative bubbles. During the 2025 Berkshire shareholder meeting, he argued that fiat currencies risked devaluation over time—a critique often used by Bitcoin advocates to highlight the appeal of decentralized assets. Yet Buffett drew a clear line: “Cryptocurrencies produce nothing,” he said, emphasizing his belief that their value is purely speculative.
Berkshire’s Crypto Proximity: The Nu Holdings Connection
While Buffett’s words remain steadfast, Berkshire’s portfolio tells a different story. Since 2021, the conglomerate has steadily increased its holdings in Nu Holdings Ltd., a Brazilian digital banking platform that operates a crypto trading service. By late 2024, Berkshire’s stake in Nu had grown to over 86 million shares, valued at nearly $1.2 billion by Q3 2025. Nu’s platform supports major cryptocurrencies like Bitcoin and Ethereum, directly linking Berkshire to the crypto economy.
This investment, which began at $500 million in 2021, now represents a significant portion of Berkshire’s tech exposure. Critics argue this contradicts Buffett’s anti-crypto rhetoric, while supporters counter that Berkshire is betting on Nu’s broader financial services ecosystem, not the crypto assets themselves.
Ask Aime: Why Does Berkshire Back Nu Holdings Despite Buffett's Crypto Skepticism?
The Debate: Is Buffett’s Legacy at Odds with the Markets?
Crypto proponents, including MicroStrategy’s Michael Saylor, have seized on Buffett’s fiat currency critiques to frame Bitcoin as a logical alternative. Saylor dubbed Berkshire’s $347.7 billion cash reserves in U.S. Treasuries the “20th Century Bitcoin,” contrasting it with his own strategy of holding over $4 billion in Bitcoin. Meanwhile, Bitcoin commentator Carl Menger sarcastically noted that Buffett’s warnings about currency debasement align with Bitcoin’s value proposition as a non-sovereign store of value.
Despite such arguments, Buffett remains unmoved. His focus on traditional value investing—prioritizing cash reserves and dividend-paying stocks—reflects a deep-seated aversion to speculative assets. “You can’t eat a Bitcoin,” he quipped in 2023, underscoring his view that cryptocurrencies lack tangible utility.
Conclusion: A Legacy Rooted in Caution, Not Contradiction
Warren Buffett’s crypto stance remains unchanged: cryptocurrencies are speculative tools without intrinsic value. Berkshire’s investments in Nu Holdings, while seemingly contradictory, align with Buffett’s broader philosophy of backing resilient businesses—even if those businesses operate in adjacent markets. The $1.2 billion stake in Nu reflects confidence in its financial infrastructure, not endorsement of crypto itself.
Crucially, Buffett’s cash-heavy strategy—$347.7 billion in Treasuries as of 2025—highlights his commitment to liquidity and stability in an era of economic uncertainty. While crypto advocates may find irony in Berkshire’s indirect crypto ties, the data underscores Buffett’s consistency: he avoids direct exposure to speculative assets while benefiting from the growth of companies that navigate those markets responsibly.
In the end, Buffett’s legacy as a traditional value investor remains intact. His warnings about cryptocurrencies, paired with his firm’s cautious bets, serve as a reminder that even in a rapidly digitizing world, timeless principles of risk management endure. As he once said, “Risk comes from not knowing what you’re doing”—and for Buffett, crypto remains a realm where the risks are too poorly understood to justify direct involvement.
