Move over Warren Buffett, here comes Satoshi Nakamoto, the creator of Bitcoin (BTC -1.41%). With Bitcoin recently hitting a new all-time high of $123,000, Nakamoto's Bitcoin holdings are now worth $134 billion. By way of comparison, Buffett's net worth is now estimated at $142 billion, according to Forbes.
So all it really takes is Bitcoin hitting a price of $130,000 or so, and Nakamoto will be worth more than Buffett. Given Bitcoin's recent price momentum, Nakamoto could surpass Buffett by the end of summer. That would have important implications for what it means to be a crypto investor.
Who is Satoshi Nakamoto?
The really fascinating part about all this is that nobody knows the real identity of Satoshi Nakamoto. This has been the subject of endless speculation, most recently in the form of a 2024 HBO documentary (Money Electric: The Bitcoin Mystery) that promised to unveil Nakamoto's true identity. It never did.
We only know the blockchain wallet where Nakamoto holds 1.1 million Bitcoins. Since the Bitcoin blockchain is transparent and can be inspected at any time, we know that these Bitcoins have not moved since 2010. Moreover, the world has not publicly heard from Nakamoto since 2011, so we don't even know if he's still alive.
That's not to say that Nakamoto's Bitcoin wallet won't one day emerge from its dormant state. Maybe he will decide to sell at some point. Just last month, the crypto world was buzzing about a Bitcoin wallet that suddenly "woke up" after 14 years and moved 80,000 Bitcoins worth $8.6 billion.
The ultimate buy-and-hold strategy?
If you think about it, Satoshi Nakamoto's approach represents the ultimate buy-and-hold investment strategy. Nakamoto mined Bitcoin, stashed it on his laptop, and never touched it again. He had so much trust in the cryptocurrency's long-term potential, that he decided to buy and hold for the long haul. And, now, 16 years later, he's worth nearly as much as legendary investor Warren Buffett.
Image source: Getty Images.
Quite frankly, this wasn't supposed to happen. For much of its history, Bitcoin has been known as a risky, volatile, and highly speculative cryptocurrency. It was exactly the type of asset that seemed to be perfect for short-term trading but not long-term investing. Big-time institutional investors largely shunned it because Bitcoin was simply too risky.
But look at what has happened to Bitcoin now. In the minds of many investors, it has become digital gold. It preserves its value wonderfully, even amid volatile market uncertainty. We're seeing this right now, as many institutional investors buy Bitcoin as a response to tariff uncertainty and potential macroeconomic weakness within the U.S.
Warren Buffett vs. Bitcoin
It's important to point out that Warren Buffett is no fan of Bitcoin. He has called it "rat poison squared." He has firmly avowed that he has never owned any Bitcoin and never will. Again and again, he has said that Bitcoin has no tangible value and that it's basically worthless. In 2022, he said that he wouldn't pay $25 for "all the Bitcoin in the world."
Will his thinking change once Satoshi Nakamoto is worth more than him? Or will the timeless wisdom of the beloved "Oracle of Omaha" prove true in the end?
From my perspective, it's becoming increasingly difficult to make the case against Bitcoin. Year after year, Bitcoin has been the top-performing asset in the world. As a result, some of the biggest Bitcoin skeptics have now become some of the biggest Bitcoin bulls. Wall Street has bought into Bitcoin. Main Street has bought into Bitcoin. And even the White House has bought into Bitcoin.
The consensus right now is that a fully diversified portfolio should have at least a 1% allocation to Bitcoin. I expect that percentage to rise over time. Some asset managers are already boosting the suggested allocation to 2%. And some financial advisors are now suggesting that investors can safely boost that number to 10% or even higher.
A paradigm shift for Bitcoin
All of this leads me to think that Bitcoin really is in the midst of a major paradigm shift. The world is changing how it thinks about crypto. Governments now view Bitcoin as a strategic asset. Institutional investors now view Bitcoin as part of their long game. And retail investors are speculating less and investing more.
Satoshi Nakamoto is leading the way, and by the end of summer, I fully expect him to pass Warren Buffett as one of the richest individuals in the world.
