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The number of billionaires including those who distrusted crypto before have invested in crypto increased last year, and that trend could continue into 2022 as fears over fiat intensify.
One example is Hungarian-born billionaire Thomas Peterffy, who in a Saturday Bloomberg report said that it would be prudent to have 2%–3% of one’s portfolio in crypto assets just in case fiat “goes to hell.” He is reportedly worth $25 billion.
Peterffy’s firm, Interactive Brokers Group Inc., announced that it would be offering crypto trading to its clients in mid-2020 following increased demand for the asset class. The company currently offers Bitcoin, Ether (ETH), Litecoin (LTC) and Bitcoin Cash (BCH) but will be expanding that selection by another five to 10 coins this month.
Peterffy, who holds an undisclosed amount of crypto himself, said that it is possible that digital assets could reap “extraordinary returns” even if some could also go to zero. “I think it can go to zero, and I think it can go to a million dollars,” he added before stating, “I have no idea.”
Bridgewater Associates founder Ray Dalio is another renowned billionaire who revealed his portfolio contained some Bitcoin and Ether last year. This revelation came just a few months after he questioned crypto’s properties as a store of value.
He has now changed that stance and views crypto investments as “alternative money” in a world where “cash is trash’’ with inflation eroding purchasing power.
In late December, Dalio commented that he was impressed at how crypto has lasted before stating, “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, labeling the move as a hedge against inflation.
Pandemic-induced stimulus packages have caused economic turmoil across the globe, the fallout from which could linger for decades. In the United States, inflation is at a four-decade high of 6.8%. This has resulted in a surge in the Consumer Price Index as the costs of daily goods continue to increase.
The 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 wealthy investors join their ranks if the trend continues.
(Article Courtesy of CoinTelegraph)