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Warren Buffett’s ‘crypto stock’ beats Apple and Amazon — but not Bitcoin

Buffett’s bet on crypto-friendly Nubank has put Berkshire Hathaway $130 million in profit already this year.

Warren Buffett may still view cryptocurrencies and Bitcoin (BTC) as “rat poison squared,” but he is generating big profits from his position in a crypto-friendly bank in 2023.

Warren Buffett’s “crypto bet” up $130 million in 2023

The “Oracle of Omaha” purchased 107 million shares of Nu Holdings, a Brazil-based fintech company and owner of the crypto-friendly Nubank, via his firm, Berkshire Hathaway, in two separate rounds in 2021.

Berkshire invested $500 million in Nu Holdings in June 2021 and raised its stake by another $250 million in December 2021. The firm has not sold a single share since, according to its second quarter 2023 earnings report.

Nu’s share price is currently up nearly 106% year-to-date (YTD), meaning Buffett’s $750 million position is now worth around $879.50 million, assuming Berkshire has still not sold any of its Nu shares. However, at its peak in February 2022, the position was worth over $1 billion.

Nu daily price chart. Source: TradingView

Why is Nubank crypto-friendly?

Nubank has been dubbed crypto-friendly because some of its divisions offer crypto-related services to over 1.35 million users. Therefore, investing in Nubank can be seen as having indirect exposure to the cryptocurrency industry. 

That includes Easynvest, a trading platform that offers a Bitcoin exchange-traded fund (ETF) product, and Nubank, a digital financial services platform that offers BTC and Ether (ETH) trading. Nubank also launched a loyalty token on the Polygon blockchain.

Moreover, Nu Holdings allocated 1% of its cash holdings to Bitcoin in May 2022.

“This move reinforces the company’s conviction in Bitcoin’s current and future potential in disrupting financial services in the region,” Nubank stated at the time. 

Nubank is the largest fintech bank in Latin America, with over 80 million customers in Brazil.

Nu crushes Apple and Amazon stocks

Underperforming Nu stocks are Buffett’s other top holdings, Amazon and Apple, which have gained 54.65% and 36%, respectively. Apple is by far the biggest holding of Berkshire Hathaway, comprising roughly 45% of its $354 billion investment portfolio as of September 2023.

Related: Bitcoin continues to outperform Warren Buffett’s portfolio, and the gap is set to widen

Nu has also outperformed Berkshire Hathaway’s stock, which has risen 9.25% YTD.

Nu vs. Amazon, Apple and Berkshire Hathaway YTD performance chart. Source: TradingView

Bitcoin price performance catches up with Nu stock

Nevertheless, Bitcoin has finally caught up to the price performance of Nu stock this year. In fact, BTC price is now also up 106% YTD amid “Uptober” and recent Bitcoin ETF euphoria.

Nu vs. BTC/USD YTD performance chart. Source: TradingView

Interestingly, Bitcoin’s rapid rise to catch up with Nu over the past weeks has coincided with BTC decoupling from the stock market in October.

But while this is generally seen as a bullish sign, some commentators argue that Bitcoin ETF “hopium” is the driver of BTC price gains presently.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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MultiversX eyes metaverse scalability as CEO sheds light on spatial computing

The MultiversX CEO discussed the recent interest of Meta and Apple in the metaverse domain and analyzed their approaches.

The metaverse gained attracted a lot of interest from the crypto community and venture capital firms during the peak of the previous bull market. The likes of Meta and Apple joining the metaverse bandwagon only gave more legitimacy to the concept, but both multibillion-dollar tech firms have quite a different approach toward it.

On one hand, Meta shifted its whole focus to virtual reality (VR) and recently released new smart glasses in partnership with Rayban while Apple incorporated a spatial computing approach and focused on augmented reality (AR) more and launched its own AR glasses earlier this year.

Blockchain-based metaverse-focused platform MultiversX CEO Beniamin Mincu believes the spatial computing approach by Apple is more catered towards the metaverse goal than Meta’s VR quest. In an exclusive interview with Cointelegraph editor Zhiyan Sun, Mincu told Cointelegraph that Meta’s focus on virtual reality could be a mistake as it isn’t as intuitive, while Apple’s spatial computing approach makes the AR glasses a more intuitive experience.

He explained that Meta’s glasses are only fixated on a particular virtual world, while the concept of the metaverse is more about an interactive experience within that virtual world. The glasses focus only on one use case, rather than multiple ones:

“I think the most fundamental one that changes the conversation is viewing a lens or an interface as a spatial computing device. I think this is a very underrated paradigm shift that Apple has introduced. So this is why spatial computing, it seems like it's the same thing, which is a different world.”

Spatial computing refers to the processes and tools used to capture, process, and interact with 3-dimensional data. Spatial computing can include IoT, digital twins, ambient computing, augmented reality, virtual reality, AI, and physical controls. Spatial computing is defined as human interaction with a machine in which the machine retains and manipulates referents to real objects and spaces.

Related: The Sandbox co-founder explains how the metaverse has evolved for brands: Web Summit 2022

Mincu added that MultiversX's (formerly Elrond) new technical upgrades on Oct. 19 will align it well with the spatial computing approach and make it more scalable. The technical upgrade would bring key features to the platform including early block proposals, parallel node processing, consensus signature checks, and dynamic gas cost improvements.

These technical upgrades promise to increase transactional throughput by 7X with faster confirmation times and shorter finality. Among other notable changes, the new upgrade will bring on-chain governance, a new and enhanced virtual machine, and an improved relayed transaction model which would allow tokens operating on the network to cover gas costs.

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Crypto Venture Firm Placeholder Capital Says Ethereum and Solana Are Like Android and iOS – Here’s Why

Crypto Venture Firm Placeholder Capital Says Ethereum and Solana Are Like Android and iOS – Here’s Why

A prominent crypto venture capital firm is comparing Ethereum (ETH) to the mobile operating system Android and Solana (SOL) to iOS. In a new blog post, Placeholder Capital makes a case for why Ethereum and Solana are comparable to the two different operating systems. “Ethereum and Solana are like Android and iOS. Android values modularity: […]

The post Crypto Venture Firm Placeholder Capital Says Ethereum and Solana Are Like Android and iOS – Here’s Why appeared first on The Daily Hodl.

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Top Trader Says Bitcoin Bottom Not in Yet, Predicts New Six-Month Lows for BTC – Here’s His Downside Target

Top Trader Says Bitcoin Bottom Not in Yet, Predicts New Six-Month Lows for BTC – Here’s His Downside Target

A top trader who nailed Bitcoin’s (BTC) 2018 bear market bottom is predicting another leg down for the crypto king. Pseudonymous analyst Bluntz tells his 224,800 followers on the social media platform X that BTC has likely printed a bearish lower-high setup after it failed to take out its resistance at $27,000 last week. According […]

The post Top Trader Says Bitcoin Bottom Not in Yet, Predicts New Six-Month Lows for BTC – Here’s His Downside Target appeared first on The Daily Hodl.

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Bitcoin Could Nosedive by Over 60% Due to One Massive Factor, Warns Crypto Analyst Nicholas Merten

Bitcoin Could Nosedive by Over 60% Due to One Massive Factor, Warns Crypto Analyst Nicholas Merten

A widely followed crypto analyst is warning that Bitcoin (BTC) could plummet on account of one potential factor. In a new strategy session, DataDash host Nicholas Merten tells his 512,000 YouTube subscribers that Bitcoin could decline by more than 60% from its current value if Apple’s market cap continues to decline. According to Merten, a […]

The post Bitcoin Could Nosedive by Over 60% Due to One Massive Factor, Warns Crypto Analyst Nicholas Merten appeared first on The Daily Hodl.

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CFPB examines Big Tech’s role in mobile payment systems ahead of rulemaking

The U.S. Consumer Financial Protection Bureau has focused on the role of Apple and Google in mobile payments with a critical eye.

Big businesses are able to act as “mini-governments” and impose their own rules on payment infrastructure, Rohit Chopra, director of the United States Consumer Financial Protection Bureau (CFPB), said at a fintech conference hosted by the Philadelphia Federal Reserve Bank on Sept. 7. As Big Tech continues to innovate, small firms may be squeezed out of the space, he added.

The rapid development of consumer payment systems, particularly point-of-sale (POS) systems, has received little regulatory attention, in contrast to crypto assets, Chopra said:

“Big Tech companies have crept into the payments ecosystem to deepen consumer engagement on their platforms, harvest and potentially monetize transactions-related data, and exploit traditional financial sector fee streams.”

Apple and Google have come to be dominant in mobile payments, giving them an outsized impact on consumers’ access to mobile payment solutions. “Tap-to-pay” near-field communication (NFC) technology, for example, is gaining users rapidly but not spreading as widely as might be expected based on the way other apps have grown.

Related: Nigerian central bank adds NFC upgrade to eNaira for contactless payments

Apple’s requirement that NFC payments made on Apple mobile devices be routed through Apple Pay is one of the hindrances the technology faces. Chopra said:

“While I agree that strong challenges to the dominant Wall Street banks and card networks are important, there is real concern that the large technology firms will be able to erect even more gates and toll booths that will prevent small firms from emerging and succeeding.”

In October, the CFPB will propose rules to give consumers more rights over their personal financial data. Those rules will encourage open banking and payments by allowing consumers to switch services more easily, the bureau assured.

Point-of-sale payment methods compared. Source: CFPB

Chopra’s speech coincided with the release of a report by the bureau on mobile devices and POS systems that elaborated on Chopra’s point in more depth.

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Bitcoin centralized by corporate giants should not be feared – Michael Saylor

During a recent podcast interview, Michael Saylor explained that Bitcoin being bought and centralized by corporations should not be feared. He also outlined three main reasons driving the need for custodians.

During a recent podcast interview, MicroStrategy’s Michael Saylor expressed the opinion that large corporations purchasing and then proceeding to centralize Bitcoin (BTC) should not be a cause for concern.

While speaking to Natalie Brunell on the Coin Stories podcast, released on Aug. 7, Saylor emphasized the inevitability of third-party and corporate participation growing in the Bitcoin space. 

However, he suggested that while Bitcoin enthusiasts may desire total self-control over their Bitcoin – aka self-sovereignty – it might not be the only answer, as people will be using Bitcoin for diverse purposes.

“We need to be prepared for Bitcoin to infuse everything” Saylor stated, explaining that as Bitcoin becomes more integrated into society, it will have many use cases and there will not be a one-size-fits-all model.

“There are different type of wrappers. Some people will always be self-custody, some will be multi-sig, some will need a layer 3 custodian. There will be a need for political or utility or functionality purposes.”
Michael Saylor speaking to Coin Stories host Natalie Brunell. Source: Coin Stories

Saylor outlined three main reasons underpinning the need for custodians – technical, political, and natural reasons.

From a political standpoint, relying on a third party might be the only course of action.

“The mayor of New York is still the mayor of New York. Unless you get rid of New York City, California, or Iceland the country, political reasons will mean the need for custodians.”

Related: Saylor’s MicroStrategy plans $750M stock sale, possibly buying more Bitcoin

On a technical note, there will be people that will want to transact crypto with their mobile phones, so trusting layer 3 third parties, such as Bank of America and Apple is going to be unavoidable.

“Bitcoin is going to be a base layer. There is going to be layer 2's like lightning to make things fast. Then there is going to be layer 3's like Bank of America and Apple. Custodial layer 3 is going to exist to provide functionality.”
Michael Saylor speaking to Coin Stories host Natalie Brunell. Source: Coin Stories

As for natural reasons, Saylor suggested the possibility that it is safer for certain people to entrust their assets with others. 

He gave the example of an 85-year-old grappling with Alzheimer’s, or the desire to secure holdings for a yet-to-be-born grandchild.

“I didn’t complain that my mother and father had the car keys when I was twelve years old, and I didn’t get the car key” Saylor stated.

Saylor stated that the optimal blend of Bitcoin integrations will be determined by the market. 

“We shouldn’t be afraid of all the different ways people integrate, wrap, embed or execute with bitcoin, there is no one right answer, the marketplace will determine the right mix of integrations of bitcoin."

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Apple’s 30% tax rules will stay for now, crypto and NFTs may have to wait

A Supreme Court judge has rejected a request from Epic Games that would've immediately loosened Apple's App Store payment rules, to the potential benefit of crypto and NFT apps.

Crypto app developers hoping for a loosening of Apple's App Store rules will have to wait longer after a United States Supreme Court held off on granting a request to let apps direct users to payments outside of Apple’s ecosystem.

An Aug. 9 decision from Justice Elena Kagan declined to let a federal appeals court decision take immediate effect as Epic had asked — with no explanation for the decision.

In April, the Court of Appeals for the Ninth Circuit ruled Apple violated California’s competition laws by not allowing apps to direct users to non-Apple linked payment solutions.

The ruling meant that developers such as Epic Games would be able to funnel  users to alternative payment methods, giving them an option that circumvents Apple’s 30% tax on in-app payments.

The 30% Apple tax has also been a hurdle for crypto firms, including those that want to offer iOS users the ability to purchase non-fungible tokens.

At the moment, there exists no means to buy an NFT on an app listed on Apple’s App Store other than through its in-app payments system, which charges a 30% commission rate and only allows purchases using fiat.

Apple’s guidelines don’t allow apps to take crypto to unlock app functionality or make in-app purchases using crypto.

This has led to most crypto apps offering only limited functionality, such as being able to view balances and assets only. Crypto exchange apps are unaffected.

Related: Lawmakers probe Apple’s App Store policies on blockchain, NFTs

Justice Kagan’s rejection of Epic’s request means Apple will get at least a few more months of reprieve from the ruling as it plans a Supreme Court appeal to the decision.

The Ninth Circuit ruling will come into effect if the Supreme Court refuses Apple’s appeal, however.

In its argument to lift the appeals court hold Epic claimed it applied a “lax legal standard” in granting the stay which would injure Epic and “innumerable consumers and other app developers for a significant period of time.”

Apple hit back saying the stay has been in place for two years already and doesn’t apply to Epic anyway. Apple booted Epic’s Fortnite off the App Store in August 2020 for attempting to workaround Apple’s in-app payments system.

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Lawmakers probe Apple’s App Store policies on blockchain, NFTs

Their letter aimed to explore whether these guidelines might inadvertently hinder the progress and growth of cutting-edge innovations.

United States Representatives Gus Bilirakis and Jan Schakowsky penned a formal letter to Apple CEO Tim Cook about concerns related to the California-based company’s App Store, and the potential effect of its guidelines on emerging technologies like blockchain and nonfungible tokens (NFTs).

The letter requests information about whether the App Store’s guidelines might inadvertently hinder the progress and growth of cutting-edge innovations.

Screenshot of the letter from the lawmakers addressed to Apple's CEO. Source: Bilirakis blog.

The lawmakers observed a pattern in Apple’s approach to its App Store guidelines, where the company seemingly capitalized on and simultaneously limited the functionality of crypto apps. They pointed out that Apple achieved this by mandating the release of “lite” versions, which both generated profits for Apple and diminished the overall utility of the applications. As evidence, they specifically mentioned the case of Axie Infinity’s App Store experience.

By dispatching the letter, the lawmakers expressed apprehensions regarding the potential negative consequences of Apple's policies on the United States' standing in the realm of emerging technologies. The Chairman and Ranking Member of the Innovation, Data, and Commerce Subcommittee conveyed their viewpoint, noting that while Apple has justified these limitations as a means to enhance security through a "walled garden" approach, there is widespread concern that the company might be wielding the App Store as a tool to suppress competition.

Related: Apple has its own GPT AI system but no stated plans for public release: Report

They emphasized the utmost importance for Congress to gain a comprehensive understanding of the App Store Guidelines and to assess to what extent these guidelines may impede innovation and have an impact on American technological leadership. They added:

"Our subcommittee remains committed to promoting full transparency and ensuring that Big Tech is held accountable for monopolistic behavior," 

They stated that they intend to create a level playing field within the industry so that American ingenuity can continue to thrive. The lawmakers previously penned a similar letter to Apple regarding App Store policies relating to TikTok and other apps originating from China.

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Apple has its own GPT AI system but no stated plans for public release: Report

The Cupertino, California-based company reportedly developed an internal GPT system on Google infrastructure for employees to tinker with.

Apple’s reportedly working on its own generative pre-trained transformer (GPT) artificial intelligence (AI) model. However, there’s no indication that the company has any plans to launch it to the public.

Per a July 19 report from Bloomberg, Apple’s internal GPT system is called “Ajax.” It’s purportedly similar to OpenAI’s ChatGPT and Google’s Bard.

Apple has a longstanding reputation for developing its products inside of a walled garden. While “Ajax,” which Bloomberg reports some engineers have referred to as “Apple GPT,” could eventually turn into a consumer-facing product, its current infrastructure could pose a problem.

Apple codenamed its GPT system “Ajax” because it was developed on top of Google Jax, a machine learning framework. It’s also reportedly running on Google Cloud, which could limit Apple’s ability to affordably scale Ajax beyond internal testing.

Google’s Bard AI system is one of the primary competitors in the consumer-facing generative AI technology space, facing direct opposition from Microsoft and OpenAI in the form of BingAI and ChatGPT. However, Apple has so far not indicated it intends to compete in this arena.

Related: Meta and Microsoft launch open-source AI model Llama 2

Apple’s track record concerning AI demonstrates that the company is privacy-focused when it concerns machine learning technology. For this reason, most of its efforts are focused on AI technologies that can be run using onboard processors instead of cloud-based services.

Chatbot technology, such as ChatGPT, typically requires internet connectivity to work. While it’s possible to run a chatbot on discrete architecture, such as the AI chip on an iPhone, the model size and capabilities are constrained by the device’s hardware.

However, if Apple were to develop a comparatively useful GPT model capable of running discretely on iPhone hardware, that could be a boon to users who value privacy over the conversational features embedded in the larger cloud-based models. Consumers who require privacy as a default would stand to benefit the most.

This could also solve or mitigate some of the outstanding problems with GPT-based chatbots. Cryptocurrency trading bots built on GPT tech, for example, currently suffer from hallucinations. In the technical sense, this means that sometimes they make things up when they can’t come up with a factual answer. 

A pretrained chatbot capable of referencing user-tuned data sets and running discretely on an iPhone could eliminate noisy data for trading bots and keep users’ financial data — such as wallet keys, personally identifiable information and transaction records — completely private.

Despite Apple’s lack of impact in the chatbot space, the Cupertino, California-based company is one of the most impactful players in AI. The AI powering the iPhone’s camera and photography editing suite remains cutting edge, and Apple Research outputs a steady stream of significant papers in the machine learning space.

A veritable “who’s who" of AI luminaries and renowned experts have also recently filtered through the company’s secretive AI labs, including the “GANfather,” Ian Goodfellow, who recently left the company to join Google DeepMind, and its current head of AI, John Giannandrea, who previously led Search at Google.

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