Warren Buffett Called Bitcoin 'Rat Poison' — Now It's Closing In On Berkshire Hathaway's Valuation
The rise of bitcoin has been one of the top stories of 2020.
What Happened: Bitcoin price hit all-time highs throughout December, passing the $27,000 level on Dec. 27.
With the rise in the price of the cryptocurrency, bitcoin’s market capitalization has taken it past that of several financial companies.
Earlier in 2020, bitcoin passed JPMorgan Chase (NYSE:JPM) and Mastercard Inc (NASDAQ:MA). Over the weekend, bitcoin’s market capitalization passed $500 billion and made it more valuable than Visa Inc (NYSE:V).
Related Link: 8 Stocks To Play Bitcoin's Resurgence
Why It’s Important: According to AssetDash, bitcoin is now the 11th-most valuable asset by market cap, with a $500-billion valuation.
Bitcoin has passed four companies on the list in the month of December.
Buffett once said bitcoin is “probably rat poison squared.”
“In terms of cryptocurrencies, generally, I can say with almost certainty that they will come to a bad ending. If I could buy a five-year put on every one of the cryptocurrencies, I’d be glad to do it but I would never short a dime’s worth,” Buffett told CNBC in 2018.
Berkshire Hathaway ranks 10th on the asset list with a market cap of $535.7 billion.
With 18,583,275 bitcoins out, the price would need to be $28,827 to pass the value of Berkshire Hathaway. With additional bitcoins mined and the cryptocurrency's continued rise, it could occur very soon.
Apple Inc (NASDAQ:AAPL) tops the AssetDash list with a market cap of $2.3 trillion. Alibaba Group (NYSE:BABA) ranks eighth with a cap of $602 million, and has fallen three spots in the month of December.
Price Action: Bitcoin was trading at $26,714.06 at last check Monday.
The Grayscale Bitcoin Trust (OTC:GBTC) ended Monday's session up 11.33% at $30.45 and is over 200% higher in 2020.
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