Notably, legendary investors Warren Buffett and Charlie Munger despise the emerging crypto industry. The two, who are in charge of the sizable corporation Berkshire Hathaway, have made a number of public statements expressing their contempt and scepticism about Bitcoin and other cryptographic forms of payment.
The fact that Bitcoin doesn’t produce something instantly recognisable is one of the main reasons Buffett could live without it. Buffett has stated that, if given the opportunity, he would not purchase every single Bitcoin in existence for just $25. In the interim, Munger has expressed his fury against Bitcoin and other digital currencies, calling them “moronic and nasty.” Cryptocurrency, according to him, undermines the system of central banks.
However, in an intriguing twist, one of the companies in Berkshire Hathaway’s vast portfolio of stocks recently announced plans to launch its own cryptocurrency. Assuming Berkshire keeps holding the shares, this would make the company indirect financial sponsors of a digital currency.
The Brazilian computerised bank Nu Possessions (NYSE: NU), which has significantly disrupted the Latin American financial market, attracted Berkshire Hathaway’s personal interest in the middle of 2021. The fintech bank offers conventional financial products with cheaper fees and streamlined computerised interactions to make it easier for Brazilians to enter the financial system. It has progressed and encouraged quick development. By the end of the second quarter of the year, Nu had more than 65 million customers and served 36% of the adult population of Brazil.
Nu opened up to the public just before the end of 2021, and Berkshire currently holds more than 107.1 million offers, or about a 2.3% interest in the company. Berkshire has invested in a major Brazilian organisation called Nu, and the economy of that nation seems to have a bright future.
In a recent public statement, Nu stated that it would launch its cryptocurrency, Aucoin, in the second half of 2023. The cryptocurrency will be supplied to clients for free and operated on the Polygon blockchain system. In order to “serve as the rationale for the establishment of a prominent awards programme in Brazil,” Aucoin’s goal is to.
“We are clearing the path for what is ahead. According to Fernando Czapski, senior manager for the project, “Aucoin is a better way to view client reliability and inspire continued commitment with Nubank products.” This project “is a step forward in our belief in the remarkable power of blockchain innovation and to democratise it much more, extending beyond the buy, trade, and support of cryptographic forms of money in the Nu application,” according to the project’s website.
Nu has progressed past being a bank that offered various loaning items and ledgers and has nurtured a multi-item stage to increase the likelihood that its clients would be drawn to it. At the moment, Nu provides its customers with online payment options, money management tools, and a shopping mall. It stands to reason that if you can persuade customers to expend more energy within the Nu biological system, they will inevitably make Nu their primary bank, which typically results in more productive customers who make greater use of the bank’s goods and services.