With inflation picking up, investors are opting for cryptocurrencies as a safeguard against fiat currency and assets. Thomas Peterffy, a Hungarian-born billionaire, believes it is wise to have 2 to 3% of one’s portfolio in crypto assets just in case fiat does a u-turn. His firm, Interactive Brokers Group Inc., is keen to offer crypto trading to clients in mid-2022.
Interactive Brokers Group, which currently offers bitcoin, ethereum, litecoin and bitcoin cash, will expand its range by up to a selection of 10 more coins. Peterffy says it is possible for digital assets to reap extraordinary returns even if some dip. The billionaire told Bloomberg that digital assets can go to zero and to a million dollars as well. Peterffy had predicted in December that BTC could go as high as $100,000.
Ray Dalio, Founder of Bridgewater Associates, views cryptocurrencies as an “alternative to money”. He highlighted that inflation erodes the purchasing power of money. As of late, Dalio has been very much impressed with crypto assets and pushed away cash saying it is the “worst investment”.
Paul Tudor Jones, a billionaire hedge fund manager, bought BTC in 2021 as a shield against inflation. There are many more investors like Ray Dalio, Thomas Peterffy and Pauk Tudor who see the dangers associated with central bank manipulation and fiat currencies. They acknowledge that times are changing. A good example is the demand and price of gold. As the dollar strengthened with the US economy, the price of gold fell, prompting investors to look elsewhere for protection.
As such, billionaires see cryptocurrencies as the best money can buy to keep them afloat.