Will VISA's NFT layout turn major shareholder Buffett into a cryptocurrency "ally"?

On August 23, VISA, Buffett's 16th largest holding, purchased an NFT artwork with Ethereum equivalent to $15.

Although VISA's bet on this alternative investment product with an ever-increasing valuation will help the formalization and legalization of NFTs, it poses a difficult problem for Buffett, a major shareholder of VISA: If VISA continues to deploy cryptocurrencies, does he need to become a ally of cryptocurrency or remove VISA from his investment portfolio?

Xiaoquan believes that from the current situation, Buffett will neither kick companies involved in cryptocurrencies out of his investment portfolio nor change his attitude towards cryptocurrencies such as Bitcoin. In the long run, Buffett may become a cryptocurrency ally for three main reasons.

First, VISA has continued to enter the crypto market this year without dragging down its stock price. As early as July this year, Visa announced that cryptocurrency-related transactions through Visa cards exceeded $1 billion in the first quarter. And it is working with 50 major cryptocurrency platforms to launch card programs that allow 70 million merchants around the world to easily convert and use digital currencies. It can be seen that VISA's stock price has risen overall, indicating that VISA's exploration of the crypto market has not affected the company's stock performance and intrinsic investment value. What's more, the main factor affecting a company's stock price is the main business situation, which has little to do with whether it is involved in cryptocurrencies. Therefore, Buffett does not need to consider selling Visa's stock for the time being.

Second, Buffett has not publicly criticized the support of a Brazilian bank he invested in for cryptocurrencies. Earlier this year, the bank Buffett invested in announced its support for cryptocurrencies and recently acquired a digital investment broker. Although Buffett has publicly criticized Bitcoin many times, he has remained silent on the bank's practice, which at least shows that Buffett does not strongly oppose the company he invested in to get involved in the crypto market.

Third, although Buffett said in March this year that the value of cryptocurrency is zero, he will never buy it, and only fools will trade cryptocurrency, Buffett revealed before that he will release a Warren currency named after himself after his death, which may be an indirect expression that he has begun to recognize the value of cryptocurrency.

It is worth mentioning that the market value of Bitcoin, which Buffett despised, has exceeded 900 billion US dollars, ranking seventh in the stock market value ranking, while the market value of Buffett's Berkshire Hathaway is only 643.5 billion US dollars, ranking ninth. In terms of market value, Bitcoin has proven its success.

Under such circumstances, Buffett's recognition of cryptocurrency is actually just around the corner. However, he himself said before Berkshire Hathaway's annual shareholders' meeting in 2018 that Bitcoin "is likely to be rat poison squared." Other words used to describe Bitcoin include mirage, not currency, and tulip. Later, he said, "The companies behind cryptocurrency cannot generate any value at all. Investing in cryptocurrency is purely speculative." Since these words are a bit absolute, in order to avoid being slapped in the face too quickly, I can only use the question of why I should buy something I don't understand to save face.