More and more billionaires are turning to crypto fearing fiat money inflation

Investors who were previously averse to cryptocurrencies are increasingly turning to Bitcoin and its sister cryptocurrencies as a hedge against inflation problems with fiat currencies.

One example is Hungarian-born billionaire Thomas Peterffy, who said in a Jan. 1 Bloomberg report it was advisable to hold between 2% and 3% of one’s portfolio in crypto assets. in case the Fiat “goes to hell”. Its value is said to be $ 25 billion.

Peterffy’s company Interactive Brokers Group Inc announced that it would offer its customers trading in cryptocurrencies in mid-2020., due to the increased demand for this asset class. The company currently offers Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, but will be adding another 5 or 10 coins to that selection this month.

More and more billionaires are turning to crypto fearing fiat money inflation
More and more billionaires are turning to crypto fearing fiat money inflation

Peterffy, who owns an unknown amount of cryptocurrencies, said it was possible that digital assets could generate “exceptional returns,” although some could, too can reach zero, according to Bloomberg. “I think it can go to zero and I think it can go to a million dollars,” he added, before declaring that “I have no idea.”

The beginning of December, Billionaire predicted that Bitcoin could hit $ 100,000 before markets pull back.

The founder of Bridgewater Associates, Ray Dalio is another renowned billionaire who revealed last year that his portfolio included Bitcoin and Ethereum. That reveal came just months after he questioned the properties of cryptocurrencies as a store of value.

Now he has changed that position and sees investments in crypto assets as “alternative money”. in a world where cash is junk and inflation is eroding purchasing power.

In late December, Dalio commented that he was impressed with the durability of cryptocurrencies before saying: “Cash, which most investors consider to be the safest investment, is the worst investment in my opinion.”.

The billion dollar hedge fund manager Paul Tudor Jones also bought Bitcoin last year and described the move as a hedge against inflation..

The economic stimulus packages induced by the pandemic have created economic turbulence around the world, the consequences of which could last for decades. In the United States, inflation is 6.8%, its highest level in four decades. This has led to an increase in the consumer price index (CPI) as the cost of everyday goods continues to rise.

Billionaires are already seeing signs of danger in fiat currencies and central bank manipulation and are increasingly turning to crypto assets.. More wealthy investors could join in 2022 if the trend continues.

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