Previously, anti-crypto investors increasingly looked to Bitcoin and its brethren as a hedge against fiat currency inflation issues.
One example is Hungarian-born billionaire Thomas Peterffy who, in a Bloomberg report from Jan. 1, said that it would be prudent to have 2-3% of your portfolio in crypto assets just in case the fiat “goes down. hell”. It would 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 following increased demand for the asset class. The company currently offers Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, but will expand that selection from an additional 5 to 10 coins this month.
Peterffy, who himself owns an undisclosed amount of crypto, said it is possible that digital assets could reap “extraordinary returns,” although some could also go to zero according to Bloomberg. “I think it can go all the way to zero, and I think it can go up to a million dollars,” he added before declaring “I have no idea.”
In early December, the billionaire predicted that Bitcoin could hit $ 100,000 before the markets started to pull back.
Related: Tom Peterffy Believes Bitcoin Could Destroy Up To $ 100,000 Before Crashing
Bridgewater Associates founder Ray Dalio is another high profile billionaire who revealed his wallet contained Bitcoin and Ethereum last year. The revelation came just months after he questioned the properties of the crypto as a store of value.
He has now changed that position and sees investing in crypto assets as an “alternative currency” in a world where “money is a dumpster” with inflation eroding purchasing power.
At the end of December, Dalio said he was impressed with the duration of crypto, before declaring “Cash, which most investors think is the safest investment is, I think, the worst investment.”
Billionaire hedge fund manager Paul Tudor Jones also bought Bitcoin last year, calling the move an inflation hedge.
The pandemic-induced stimulus packages have caused economic turmoil around the world, the fallout of which could linger for decades. Inflation in the United States is at a 4-decade high of 6.8%. This has caused the Consumer Price Index (CPI) to rise as the costs of everyday goods continue to rise.
Billionaires are already seeing the danger signs with fiat currencies and central bank manipulation, and they are increasingly turning to crypto assets. The year 2022 could see more high net worth investors join their ranks if the trend continues.