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Warren Buffett Shifts Funds from US to Japan, Bitcoin Surge Expected to Follow

Buffet's Japan investment likely to cause bitcoin surge

Warren Buffett has recently made a major shift in the investment policies of his company Berkshire Hathaway, which will reduce its dependence on the US economy. More than $6 billion was moved to Japan’s five biggest trading houses following the news that the Federal Reserve is going to “push up inflation.” Apart from affecting the US economy, the nonagenarian’s decision is also expected to shake up the world of cryptocurrencies.

Judging by what followed similar moves, crypto enthusiasts are feeling very optimistic that Buffet’s $6-million-exile from the US economy can give bitcoin a major boost. According to some, this move can bring the world’s most popular cryptocurrency to its all-time high.

Berkshire Hathaway Invests $6 Billion in Japan

The story goes that Warren Buffett’s corporation Berkshire Hathaway has invested more than $6 billion in Japan’s trading houses. Five percent of each of the top 5 trading houses in Japan now belongs to Berkshire Hathaway. Those companies are, namely, Sumitomo Corp, Mitsui & Co. Ltd, Mitsubishi Corp, Marubeni Corp, and Itochu Corp.

Even with the big-money investments made recently, Berkshire Hathaway still remains largely centered around the US market. The company owns more than 90 American companies, as well as shares in almost as many US-based businesses. 

Some of the biggest brands in Warren Buffet’s portfolio include Apple Inc., American Express, Bank of America, Coca-Cola, and so on.

Warren Buffet, a Bitcoin Sceptic

Buffet’s decision to shift $6 billion to Japan is almost certain to cause turbulence in the economy of the United States, potentially turning American businesses away from the US dollar. He did invest a lot of money in gold in recent times, as well as in many other commodities.

So far, Buffet has kept himself out of the crypto world. Actually, Buffet seems to be a strong critic of bitcoin, suggesting that the crypto craze “won’t end well.”

In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending.

He might be on the road to changing his mind, at least that’s what people on Twitter have been suggesting. Max Keiser, a TV personality and a bitcoin enthusiast, believes Buffet will end up panic-buy bitcoin at $50,000 price once he realizes its true potential.

It’s unclear whether Buffet has some cryptocurrencies in his possession, although there were reports of him receiving them as presents. For instance, Tron founder Justin Sun gifted him one bitcoin in February. Still, Buffet later said that his policy is to re-gift all the cryptocurrencies he receives to charity.

All Signs Say BTC is on a Surge

The probable reason behind the Buffet’s decision to move money to Japan is the Federal Reserve’s decision to increase inflation. Add to that the recent weakness of the US dollar amid the COVID-19 pandemic, together with anti-racism protests, and you’ll see why Japan might be a more fertile business ground at the moment.

Furthermore, Buffet’s decision might also be influenced by the political uncertainty surrounding the election. Democrat Joe Biden, who seems not to care about cryptos, is pitted against self-professed bitcoin-hater Donald Trump.

All the reasons that made Buffet shift funds to Japan are the reasons why bitcoin is expected to experience a drastic surge. Other signs that bitcoin is on the rise is the fact that many large US companies have started reducing their cash holdings in favor of bitcoin.

For instance, Nasdaq-listed Microstrategy has recently bought $250 million worth of bitcoin. Over the northern border, Canadian restaurant chain Tahini’s has moved all of its cash reserves into cryptos.

If there’s a moral to this story, it’s that you should seriously consider getting rid of dollars in favor of bitcoin.

Lee Jenkins

Lee is our resident cryptocurrency expert who knows the ins and outs of each coin and the blockchain technology behind them. You’ll find that most of our technical guides are written or overseen by Lee and they are all easily digestible by the new and experienced alike, so there is no better place to learn blockchain 101 than here. Occasionally you may see a news article from him if it’s tech related!