The Year of Bitcoin: A Paradigm Shift
As 2023 unfolds, Bitcoin has put on its game face, soaring nearly 55% year-to-date (YTD). That’s right, while some stocks are playing the slow game, Bitcoin is flexing like a gym rat after leg day. In contrast, Nubank (trading as NU) has managed a comparatively humble rise of just 26%. Meanwhile, Coinbase’s stock (COIN) even earned its black belt in stock reboots with a jaw-dropping growth of over 100% YTD! It seems that when it comes to crypto exposure, Bitcoin is the heavyweight champion.
Buffett’s Crypto Curiosity: The NU Investment
However, let’s not count out Warren Buffett just yet. The Oracle himself bought a whopping $1.5 billion in Nubank stock back in mid-2021. It caught everyone off guard, considering he’s not exactly waving a Bitcoin flag. Buffett’s investment philosophy historically shies away from crypto—but here he is, supporting a fintech player dabbling in the crypto waters. But, spoiler alert: NU is down 38% YOY, while COIN’s performance has also been less than stellar, dipping around 61.76% over the same period.
Why Does Buffett Hold NU?
Despite Nubank’s rocky price trajectory, Buffett remains unfazed. He hasn’t sold a single share, sticking with the fintech giant amidst a tough market. This steadfastness might be connected to Nubank’s solid performance metrics, like a tasty 140% YOY revenue growth. It’s almost like watching a slow-burn Netflix series; you know it has potential, even if it’s frustrating at times.
Cathie Wood’s COIN Crusade
According to Cathie Wood, the ARK Innovator, investing is like surfing; you catch the right wave and you ride it until the tide turns. In 2023, she seems to have caught that right wave with Coinbase. Wood’s ARK Investment firm has been loading up on COIN shares, making it one of her top holdings. Despite 2022’s rough waters for Coinbase, where revenue plummeted by 57%, Cathie remains committed. Talk about loyalty!
Bitcoin vs. Stocks: The Great Debate
So, is it better to hold Bitcoin or stick to crypto-exposed stocks? Well, looking at the numbers, it seems like Bitcoin is consistently playing in a different league. Since its market debut, NU has plunged over 50%, while Bitcoin’s been more resilient, dropping only about 44%. Yes, Bitcoin may have its ups and downs, but it still comes out on top when compared to many stocks in the crypto space.
The Bottom Line
In a nutshell, for 2023, it appears Bitcoin is the crème de la crème. While traditional stocks struggle to gain traction, Bitcoin continues to prove its worth. So, if you’re still on the fence about whether to buy that digital currency or not, one thing’s for sure: Bitcoin is making moves that even Warren Buffett would raise an eyebrow at.
