Pandemic has caused global economic instability, and the consequences of which can last for decades, especially heightened inflation rate. In the United States, inflation is at 6.8%, the highest rate of four decades. This has resulted in the surge of Consumer Price Index as the costs of daily goods continue to increase.
The billionaires have already seen danger signs of fiat currencies and central bank manipulation, that turning their concern over crypto assets. 2022 could see more wealthy investors join crypto-invested ranks if the trend continues.
One example is Thomas Peterffy, a Hungarian billionaire, who appeared in the Wall Street Journal in 2017 to warn about the dangers of Bitcoin-related contracts to capital markets. And now, after 4 years, this billionaire has become an expert in crypto field.
Peterffy advised investors should have from 2% to 3% of their personal wealth in crypto, in case the base currency depreciates. He himself owns several digital coins, while his own company – Interactive Brokers Group – recently encouraged clients to trade by crypto. 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’s approach highlighted a shift in attitudes towards cryptocurrencies of investors who used to be scornful or wary of these assets. They realized huge potentials could be missed if they keep ignoring crypto.
Bridgewater Associates founder, Ray Dalio, is another renowned billionaire who recently revealed holding some Bitcoin and Ethereum in his portfolio, just months after he questioned the benefits of cryptocurrencies as a store of assets. The billionaire sees these investments as “alternative money” in a world where “cash is trash’’ and inflation erodes purchasing power. In late December, Dalio commented that he was impressed at how crypto has grown so fast.
Billionaire hedge fund manager Paul Tudor Jones also join crypto race last year. In an interview on October 21, the founder and CIO of Tudor Investment Corporation expanded his thoughts about crypto: “Listen, I said then, I said now, I’ve got crypto in single digits in my portfolio. I have a small trading position at our fund. I do think we’re moving into an increasingly digitized world.” He also emphasized the role of crypto as a long-term store of wealth tool against inflation when mentioned “Bitcoin will be a great hedge.”
Even fluctuating wildly, a large number of investors and individuals are trully diving into Bitcoin and Ethereum as well as other cryptocurrencies. Especially, when the world is facing the rising of fiat inflation, investing in crypto will be a perfect alternative.