Does the right hand know what the left hand is doing at Berkshire Hathaway?
That is perhaps one element of the question posed by some market prognosticators, and answered to some extent by Morgan Creek co-founder Jason Williams, according to new tech reports.
Williams has a theory: that despite Warren Buffett’s personal distaste for the digital cryptocurrency Bitcoin, his company’s trading desks will nonetheless make strategic decisions and move value from equities to Bitcoin, preparing for some type of market collapse.
A tweet by Williams August 15 suggested that it will be Buffett’s traders who sign off on the project, probably without his direct endorsement.
“Buffett sold banks and bought gold,” Williams tweeted. “He will buy #Bitcoin soon.”
Since Warren Buffett has referred to Bitcoin as “rat poison squared,” many feel it’s unlikely that he’s going to personally suggest a move into the digital asset.
However, there’s the theory that a move from equities to gold prefigures a similar type of flight to Bitcoin and that eventually, Berkshire Hathaway administrators will be compelled to make what will look like a common-sense move with or without Buffett’s explicit sign-off.
All of that would take Bitcoin dramatically higher, but some say a steep rise in Bitcoin value wouldn’t even require specific moves into that asset itself.
Max Kaiser, for one, is contending that just the moves into gold will propel Bitcoin higher, perhaps as high as 50,000. Here’s the tweet:
“Global $100 trillion fund management biz is less than 1% invested in Gold. With Buffett now moving into Gold. Expect global allocation of 5% AU min. Implies $5,000 Gold. Expect a 1% BTC global allocation ($1 trillion). This implies $50,000 for Bitcoin Expect PTJ ups to 10%.”
For anyone who’s interested in Bitcoin or similar cryptocurrencies, it’s important to look at how all this is playing out in markets. So far, such interest has only prodded Bitcoin up to around $11,800 … but it’s still early.
