Bitcoin bubble no more: billionaires catching up to crypto FOMO

What
prompted
billionaire
investors
like
George
Soros,
Mark
Cuban,
and
others
to
change
their
stance
on
Bitcoin
and
dive
into
the
crypto
market?

From
skeptic
to
investor:
Soros’s
changing
stance

When
George
Soros
spoke
at
Davos
in
2018,
he
was
quite
clear
about
his
skepticism
towards
Bitcoin
(BTC),
describing
it
as
a
classic
bubble.
His
primary
concern
was
its
volatility,
which
he
believed
made
it
unsuitable
as
a
currency.

“Bitcoin
is
not
a
currency,”
Soros
said,
“because
a
currency
is
supposed
to
be
a
stable
store
of
value,
and
a
currency
that
can
fluctuate
25%
in
a
day
can’t
be
used,
for
instance,
to
pay
wages.
Because
the
wages
could
drop
by
25%
in
a
day.”

Despite
his
reservations
about
Bitcoin,
Soros
was
optimistic
about
the
underlying

blockchain
technology.
He
saw
its
potential
for
good,
particularly
in
helping
migrants
keep
their
money
safe.

Fast
forward
to
October
2021,
and
Soros
Fund
Management
revealed
it
owned
some
Bitcoin.
Dawn
Fitzpatrick,
CEO
and
chief
investment
officer
of
Soros
Fund
Management,
stated
at
a
Bloomberg
event
that
the
fund
owned
“some
coins
…
but
not
a
lot.”

By
December
2022,
Soros
Fund
Management
had
further

deepened
its
involvement
in
the
crypto
sector.
The
fund
purchased
$39.6
million
worth
of
convertible
debentures
in
Marathon
Digital
Holdings,
a
prominent
crypto
mining
company.

Convertible
debentures
are
long-term
debt
instruments
that
can
be
converted
into
stock,
showing
Soros’s
strategic
approach
to
gaining
exposure
to
the
crypto
market.

In
addition,
the
fund
acquired
large
positions
in
MicroStrategy.
Soros’s
13F
filings
with
the
SEC
revealed
both
call
and
put
options
on
MicroStrategy
shares,
as
well
as
nearly
$200
million
in
MicroStrategy
preferred
shares.

And
now,
by
May
2024,
Soros
Fund
Management’s
interest
in
MicroStrategy
has
grown
even
more,
with
holdings
valued
at
over
$135
million.

This
investment
is
notable
because
MicroStrategy
has
been
a
major
player
in
the
Bitcoin
market,

holding
over
214,000
BTC,
thanks
to
its
co-founder
Michael
Saylor’s
aggressive
Bitcoin
acquisition
strategy.

Mark
Cuban:
from
bananas
to
blockchain
believer

Mark
Cuban,
the
billionaire
owner
of
the
Dallas
Mavericks,
has
had
quite
a
journey
with
cryptocurrencies.

Back
in
2019,
during
a
YouTube
Q&A
session,
Cuban
famously
quipped
that
he
would
“rather
have
bananas
than
Bitcoin,”
humorously
citing
his
early
skepticism.

He
compared
Bitcoin
to
baseball
cards
and
comic
books,
emphasizing
that
these
items,
in
his
view,
had
no
intrinsic
value.

Despite
his
initial
doubts,
Cuban’s
stance
on
crypto
began
to

change.
By
2021,
Cuban
had
become
a
vocal
supporter
of
decentralized
finance
(DeFi)
and
non-fungible
tokens
(NFTs).

He
saw
the
potential
of
smart
contracts
and
decentralized
applications
(dApps)
to
innovate
industries
beyond
finance.
As
a
result,
his
investment
portfolio
grew
to
include
projects
like
Polygon
(MATIC),
a

layer
2
scaling
solution
for
Ethereum
(ETH).

Cuban’s
Dallas
Mavericks
even
started
accepting
Bitcoin
and
other
crypto
assets
for
tickets
and
merchandise,
further
cementing
his
commitment
to
the
crypto
space.

Cuban’s
dedication
to
the
crypto
industry
is
also
evident
from
his
investment
strategy.
He
revealed
that
80%
of
his
non-“Shark
Tank”
investments
are
focused
on
crypto
and
blockchain
technology.

He
sees
the
decentralization
aspect
of
digital
assets
as
the
biggest
draw,
with
a
particular
interest
in
decentralized
autonomous
organizations
(DAOs).

DAOs
operate
without
a
central
authority,
relying
on
token
holders
to
make
decisions,
which
Cuban
finds
appealing
for
its
democratic
approach.

Today,
Mark
Cuban
is
one
of
the
most
prominent
billionaire
advocates
for
blockchain
technology.
His
journey
from
preferring
bananas
over
Bitcoin
to
investing
heavily
in
blockchain
projects
is
definitely
a
tale
worth
sharing.

Warren
Buffett:
from
skepticism
to
strategic
investments

Warren
Buffett,
the
legendary
investor
and
CEO
of
Berkshire
Hathaway,
has
always
been
known
for
his
critical
view
of
cryptocurrencies.
In
2018,
he
famously
called
Bitcoin
“rat
poison
squared,”
expressing
deep
doubts
about
its
value
and
long-term
sustainability.

Buffett
prefers
investments
in
companies
with
tangible
assets
and
steady
cash
flows,
which
makes
the
wild
ups
and
downs
of
cryptocurrencies
unappealing
to
him.

But
despite
his
harsh
words,
Buffett’s
actions
tell
a
more
nuanced
story.
In
late
2021,
Berkshire
Hathaway
made
a
surprising
move
by

investing
$1
billion
in
Nubank,
a
Brazilian
digital
bank
that’s
friendly
to
cryptocurrencies.

According
to
a
13F
filing
with
the
SEC,
Berkshire
bought
107.1
million
shares
of
Nu
Holdings
at
an
average
price
of
$9.38
per
share.

This
big
investment
wasn’t
Buffett’s
first
dance
with
Nubank.
Earlier
in
June
2021,
Berkshire
Hathaway
had
already

poured
$500
million
into
Nubank
during
a
Series
G
funding
round
extension.
This
round
valued
Nubank
at
$30
billion.

In
December
2021,
when
Nubank
went
public,
Berkshire
Hathaway

bought
another
30
million
shares
for
$250
million.
At
that
point,
Nubank’s
value
skyrocketed
to
$41.5
billion.

What
does
it
mean?
Buffett’s
investments
in
Nubank
hint
at
a
careful
yet
strategic
interest
in
the
fintech
and
crypto
space.
While
he
remains
cautious
about
directly
investing
in
crypto,
his
actions
suggest
a
slow
but
steady
adaptation
to
the
changing
environment.

Capitalists
always
dance
to
the
tune
of
money

Money
talks,
and
in
the
world
of
finance,
it
speaks
louder
than
anything
else.
The
lure
of
profit
can
turn
even
the
staunchest
skeptics
into
enthusiastic
supporters
and,
occasionally,
cause
fervent
believers
to
become
wary
critics.

Goldman
Sachs
is
a
prime
example.
In
2018,
they
halted
their
plans
to
open
a
crypto
trading
desk
due
to
regulatory
uncertainty
and
lack
of
institutional
interest.

But
by
2021,
as
Bitcoin
surged
and
institutional
demand
grew,
Goldman
Sachs

relaunched
its
crypto
trading
desk,
offering
Bitcoin
futures
and
non-deliverable
forwards
to
its
clients.

At
the
Consensus
2024
conference
hosted
by
CoinDesk,
Goldman
Sachs
even
celebrated
the

success
of
new
spot
Bitcoin
ETFs.

Mathew
McDermott,
the
investment
bank’s
global
head
of
digital
assets,
called
the
SEC’s
approval
of

spot
BTC
ETFs
a
“big
psychological
turning
point”
and
celebrated
their
“astonishing
success.”

Ray
Dalio,
founder
of
Bridgewater
Associates,
was
another
notable
skeptic.
He
initially
criticized
Bitcoin
in
September
2017

calling
it
a
“bubble”,
stating
it
was
neither
a
good
store
of
value
nor
a
medium
of
exchange.

However,
by
2021,
Dalio

revealed
that
he
owned
some
Bitcoin
and
called
it
“one
hell
of
an
invention”,
recognizing
its
potential
as
a
hedge
against
inflation
and
currency
devaluation.

But
why
are
these
capitalists
so
eager
to
embrace
this
new
world?
The
answer
lies
in
diversification
and
hedging.

With
inflation
rates
hitting
multi-decade
highs
and
traditional
assets
underperforming,
digital
assets
offer
an
attractive
hedge
against
economic
uncertainties.

The
future
of
finance
is
being
written
in
code
and
blockchain,
and
those
willing
to
dance
to
this
new
tune
will
lead
the
way.

Bitcoin bubble no more: billionaires catching up to crypto FOMO

Table of Contents

From skeptic to investor: Soros’s changing stance

Mark Cuban: from bananas to blockchain believer

Warren Buffett: from skepticism to strategic investments

Capitalists always dance to the tune of money

Table
of
Contents

From
skeptic
to
investor:
Soros’s
changing
stance

Mark
Cuban:
from
bananas
to
blockchain
believer

Warren
Buffett:
from
skepticism
to
strategic
investments

Capitalists
always
dance
to
the
tune
of
money