Former anti-crypto giants storm into space over fears of inflation
Formerly anti-crypto investors are flocking to Bitcoin and its coins to hedge against fiat currency inflation fears.
A good example is the Hungarian billionaire Thomas Peterffy, who once said to be careful if your portfolio is 2-3% crypto, because that is the way to hell. His fortune is said to be worth $ 25 billion.
Peterffy’s company Interactive Brokers Group Inc. has announced that it will offer crypto trading to its clients in mid-2020 after demand for the emerging asset class increased. The company currently offers Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, but will be adding 5-10 coins to that selection this month.
Peterffy, who holds an undisclosed amount of the cryptocurrency, said there is a chance the digital asset could generate “abnormally high returns” even if some could go to zero as well.
“I think it could go to zero, and I think it could reach a million dollars too.”
In early December, the billionaire predicted that Bitcoin could soar to $ 100,000 before the market regresses.
Bridgewater Associates founder Ray Dalio is another famous billionaire who revealed last year that his portfolio includes some Bitcoin and Ethereum. This reveal comes just months after he questioned the properties of cryptocurrency as a store of value.
Now he has changed that stance and sees crypto investing as “alternative money” in a world where “cash is junk” and inflation is undermining purchasing power.
In late December, Dalio commented that he was impressed with the existence of cryptocurrencies before saying that “cash, which I think most investors consider the safest investment, is the worst investment I think”.
Billionaire hedge fund manager Paul Tudor Jones also bought Bitcoin last year as he viewed the move as an inflation hedge.
The stimulus packages caused by the pandemic have created economic instability around the world, the consequences of which could last for decades. In the United States, inflation is a four-year high of 6.8%. This has driven the index of consumer prices (CPI) higher as the cost of everyday goods continues to rise.
Billionaires have seen the dangers of fiat currencies and central bank tampering and are increasingly turning to cryptocurrencies. More giants are likely to join in 2022 if this trend continues.
In 2021, Bitcoin still closes the year with a return of around 58% despite the ups and downs. This isn’t a bad number when compared to gold and stocks.
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