Benzinga - Few names ring louder than Warren Buffett in the world of finance.
Known as the "Oracle of Omaha," Buffett, chairman and CEO of Berkshire Hathaway Inc (NYSE: BRK-A) (NYSE: BRK-B), has has transformed a struggling textile manufacturing firm into a portfolio valued at over $325 billion.
Buffett, however, has been infamously skeptical about cryptocurrencies, particularly Bitcoin (CRYPTO: BTC), which he famously called “rat poison squared” in a 2018 interview with CNBC.
Buffett even went so far as to wager that, given the chance, he would gladly “buy a five-year put on every one of the cryptocurrencies,” while also making it clear he would “never short a dime’s worth.”
Well, it's been five years.
Buffett made that statement on May 5, 2018, when Bitcoin was hovering just under $10,000. Fast-forward to now, where Bitcoin is rallying, reclaiming the $30,000 level amid increasing institutional interest, evidenced by recent filings for a Bitcoin ETF by BlackRock Inc (NYSE:BLK).
While Buffett did express caution in his hypothetical bet, clarifying he wouldn’t short crypto in the near term — he would have lost most of the premium on his puts if he’d taken the wager.
Bitcoin hit an all-time high of $67,567 on November 8, 2021, so Buffett made the right call by saying he wouldn't go short.
Read also: If You Invested $1,000 In Bitcoin When Warren Buffett Called It ‘Rat Poison Squared,’ Here’s How Much You’d Have Now
The Oracle of Omaha also said he wouldn't buy Bitcoin even if it went to $25, leading to backlash from the crypto community, with figures like Peter Thiel labeling him as “enemy number one” of Bitcoin.
Though it should be noted that Buffett hasn’t entirely turned his back on the crypto space.
Last year, Berkshire invested $1 billion in Nubank, one of Brazil’s largest fintech banks focused on cryptocurrencies, and it wasn’t Berkshire's first time dealing with Nu Holdings Ltd (NYSE:NU) either.
The conglomerate reportedly bought 30 million Nubank shares for $250 million in December 2021 during the company’s IPO, and had earlier invested $500 million in June 2021.
Investment prowess aside, it's clear that the legendary investor's 2018 prediction on Bitcoin would have cost dearly, showing that even the most respected investors don’t always get it right.
Read next: If You Invested $1,000 In Bitcoin When It Launched, Here’s How Much You’d Have Now
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