Billionaires turning towards Bitcoin amidst fears of inflation
Cryptocurrencies are now showing signs of being an asset class amidst growing adoption. The current trend shows that investors initially opposed to Bitcoin and cryptocurrencies have become more open towards digital assets.
The action of these investors to turn towards Bitcoin comes as inflation fears grow, and these assets become tools to hedge against inflation.
Billionaires moving towards Bitcoin
One of the billionaire investors who have switched towards BTC is Thomas Peterffy, a Hungarian born billionaire. In a Bloomberg publication, Peterffy noted that it was a good decision to have 2% to 3% of their portfolio locked in crypto assets.
Peterffy is worth around $25 billion, and he supported that cryptocurrencies were a viable option if fiat currency “goes to hell.”
The billionaire is behind the Interactive Brokers Group Inc. In mid-2020, the firm announced that it would start offering crypto trading services to its clients due to increased demand. The firm currently offers support for BTC, Ethereum, Litecoin and Bitcoin Cash, and before the end of this month, it is expected to increase this offering by an additional five to ten coins.
Besides venturing into crypto through his company, Peterffy also has personal BTC holdings. The billionaire noted that crypto assets could generate “extraordinary returns” but also noted some coins had the potential to go back to zero.
“I think it can go to zero, and I think it can go to a million dollars,” he said. “I have no idea.” Towards the beginning of December, Peterffy predicted that Bitcoin could climb to $100,000. However, he also noted that the market could retreat once such highs are achieved.
Other billionaires also shift towards crypto
The other billionaire shifting towards cryptocurrencies is Ray Dalio, the founder of Bridgewater Associates. Last year, Dalio noted that his investment portfolio comprises BTC and Ethereum. Before this move, Dalio was a critic of crypto investments.
Dalio is now a supporter of crypto assets. He has previously stated that crypto assets were an alternative investment in cases where “cash is trash”, and inflation affected the purchasing power.
Paul Tudor, a billionaire hedge fund, also announced the purchase of Bitcoin in 2020, stating that the purchase was a hedge against inflation. In the US, inflation sits at a three-decade high, which has prompted investors to look towards other ways to store their wealth.
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