Warren Buffett’s Recent Huge Investment Favors Cryptocurrencies

The host spoke with a few notable cryptocurrency and fintech CEOs from Microstrategy, Binance, and Nubank this week at Fortune Global Forum, the company’s flagship conference.The host spoke with Microstrategy CEO Michael Saylor on Tuesday evening.The interview occurred shortly after the corporation announced its plans to raise $500 million in junk bonds to purchase Bitcoin. 

They were questioned as to why someone would buy this problematic stuff rather than Bitcoin. Charley Grant of the Wall Street Journal writes about it on Twitter.

“So with these beauties, you get an opportunity to participate in all the downside crypto risk but not the upside,” Saylor was adamantly opposed. “If you have hundreds of billions of dollars to invest in corporate bonds [like certain large bond funds], this is a great alternative for you since it’s more profitable and highly secure,” He highlighted that the bonds offer returns surpassing 6%. “We’re creating it easier for all kinds of investors to gain experience of bitcoin and the type of tools it needed.”Perhaps—but is it not a major detour from Microstrategy’s core business of selling analytics software? Again, Saylor opposed this narrative. The stock price of the sector has quadrupled over the past year to more than $500 per share. “It’s not a distraction for the stockholders.”

Saylor’s has panel support. Which have Changpeng Zhao, CEO of Binance, the world’s largest crypto exchange, was speaking with him. He applauded the selling when he asked about the bitcoin junk bonds. “There is a big market where individuals buying bonds or purchasing equities in your firm are a lot more confident because they understand it,” he continued.

The host asks CZ to comment on a petition purportedly being started early this year by the IRS and Judicial Branch. The government wants to determine whether and how people can use crypto exchanges for money laundering or tax evasion. “Sorry I can,t disclose, discuss, validate or deny any investigation, or the absence of such investigation,” denied CZ. 

He concluded that “crypto is a new field and we just want to cooperate” with the law enforcement authorities.

Can the recent attempts on malware prompt stringent rules on crypto exchanges like Binance itself? “It’s very possible,”answered CZ. 

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“While using an abbreviation for ‘understand exactly your customer and anti-money laundering standards, I think there will be greater scrutiny as to KYC AML checks.”

“Hackers may be interested in Bitcoin since it’s a better form of money. It doesn’t mean that it’s a bad thing,” CZ added. 

“I hope and believe that most authorities throughout the world are aware of this.”

Cristina Junqueira, co-founder and CEO of Nubank, the world’s largest digital bank, was interviewed the next day, on Wednesday afternoon. The conversation took place shortly after it was announced that the bank challenger had raised $750 million in additional capital, including $500 million from Warren Buffett’s investment firm Berkshire Hathaway.”Investing in technology is seldom for them,” said Junqueira. However, she said that Todd Combs, a Buffett Protegee and Geico CEO with a penchant for financial technology  “has done an excellent work to to upgrade them with the latest trends.”