The Market Is Mispricing the Cryptos That Matter

The Oracle of Omaha called it "rat poison squared."

Back in 2018, when Bitcoin was trading around $10,000, Warren Buffett dismissed cryptocurrency with his usual blunt style.

At the time, I wouldn't have blamed him.

Seven years ago, cryptocurrency was full of scams.

To be fair, it still is.

Hundreds of worthless tokens. Almost no real businesses.

Buffett's mistake was lumping the few legitimate projects together with the garbage.

He also couldn't see what would drive real world demand.

Without real usage, prices have no reason to climb.

This past week, Buffett published his final letter as CEO of Berkshire Hathaway.

The 95-year-old legend is stepping down after 60 years of building a $1 trillion empire.

In his farewell, Buffett reflected on his journey.

He never mentioned cryptocurrency.

But something has changed since his "rat poison" comment...

From Hype to Usage

Cryptocurrency is finally growing up.

After years of wild promises, the industry is building real businesses.

These businesses have sales and solve real problems.

Stablecoins are digital dollars that move around the world in seconds.

No banks. No three-day waits. No expensive fees.

Payments are just one of the ways these standout cryptos are being used by real people.

Helium (HNT) lets anyone set up a hotspot and provide cellular coverage.

Millions of people use it every day without knowing it.

Their phones connect to Helium’s access points just like any other cell tower. 

Anyone can set up a Helium hotspot and immediately start earning cryptocurrency for helping provide cell coverage.

Crypto is also being used to develop and improve AI.

Bittensor (TAO) created a marketplace where people build AI tools and get paid.

Some AI systems predict the weather.

Others forecast stock movements or help programmers write code.

Ethereum (ETH) and Solana (SOL) have become platforms for trading stocks, bonds, and commodities.

Traditional businesses are paying attention, too.

Lemonade, Inc. (LMND), an insurance company, built tools to protect farmers in Africa.

When droughts destroy crops, the farmers still get paid through automatic insurance.

The payments happen instantly, no paperwork required.

Businesses like these would make sense to Buffett.

They generate value. They serve customers. They solve problems.

But the market hasn't figured out how to price them yet...

What This Means for Investors

Bitcoin climbed from $10,000 in 2018 to over $100,000 today.

That's a 10x return in seven years.

If Buffett had bet against Bitcoin, he would've lost everything.

But he didn't, because deep down he knew he did not understand it.

Now crypto is finally becoming something Warren Buffett might understand...

Cryptocurrencies with real users and real revenue are trading cheap.

Way cheaper than they should be.

The market hasn't figured out how to properly value these businesses yet.

When markets can't properly price them, early investors can win big.

The recent dip is your chance to get in at a discount.

Warren Buffett spent six decades proving something simple.

Patient investors who identify real value and hold through the rough patches eventually win.

His advice works for cryptocurrency just like it worked for railroads and insurance companies.

Just remember: keep crypto small in your portfolio, and never invest more than you can afford to lose.

Investors positioned correctly today could build serious wealth as cryptocurrency goes mainstream.

The cryptocurrency industry is becoming the kind of business Buffett built his fortune on.

Even if he'd never admit it.