Previously, anti-crypto investors have increasingly turned to Bitcoin and its siblings as a hedge against fiat currency inflation concerns.
One example is Hungarian-born billionaire Thomas Peterffy, who, in a Jan. 1 Bloomberg report, said it would be prudent to have 2-3% of one's portfolio in crypto assets in case fiat money " go to hell. " He is reportedly worth $ 25 billion.
Peterffy's firm, Interactive Brokers Group Inc., announced that it would be offering crypto trading to your customers 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 by another 5-10 coins this month.
Peterffy, who owns an undisclosed amount of crypto, said it is possible for digital assets to make "extraordinary returns" even if some could also go to zero according to Bloomberg. "I think it can go to zero, and I think it can go to a million dollars," he added before stating that "I have no idea."
In early December, the billionaire predicted that Bitcoin could climb as high as $ 100,000 before markets start to retreat.
Related: Tom Peterffy Believes Bitcoin Could Go Bust Could Hit $ 100K Before Crashing
Bridgewater Associates founder Ray Dalio is another big-name billionaire who revealed that his portfolio contained some Bitcoin and Ethereum last year. This revelation came just a few months after he questioned the properties of cryptocurrencies as a store of value.
Now he has changed that stance and sees crypto-asset investments as "alternative money" in a world where "cash is junk" with inflation eroding purchasing power.
At the end of December, Dalio commented that he was Impressed by how cryptocurrencies lasted, before saying "Cash, which most investors think is the safest investment, I think is the worst investment."
Billionaire hedge fund manager Paul Tudor Jones also bought bitcoin last year, labeling the move as a hedge against inflation.
Stimulus packages induced by the pandemic have caused economic turmoil around the world, the consequences of which could persist for decades. In the United States, inflation is at a 4-decade high of 6.8%. This has resulted in a increase in the consumer price index (CPI) as the costs of daily goods continue to rise.
Billionaires are already seeing the danger signs with fiat currencies and central bank manipulation, and are increasingly turning to crypto assets. The year 2022 could see more wealthy investors join their ranks if the trend continues.
