The number of billionaires who have invested in cryptocurrency surged last year, and this trend may continue into 2022 as concerns about fiat currency grow.
Previously anti-crypto investors are rapidly gravitating to Bitcoin and its peers as a hedge against fears about fiat currency inflation.
One example is Hungarian-born billionaire Thomas Peterffy, who stated in a January 1 Bloomberg story that it is good to keep 2-3 percent of one’s portfolio in crypto assets in case fiat “goes to hell.” He is said to be worth $25 billion.
Following rising demand for the asset class, Peterffy’s firm, Interactive Brokers Group Inc., said that it would begin offering crypto trading to its clients in mid-2020. The startup presently supports Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, but will add another 5-10 coins this month.
According to Bloomberg, Peterffy, who owns an undisclosed amount of cryptocurrency, believes that digital assets have the potential to generate “exceptional profits,” even if some may go to zero. “I think it can fall to nothing, and I think it can get to a million dollars,” he continued, before adding, “I have no idea.”
Early in December, the billionaire projected that Bitcoin could reach $100,000 before markets began to fall.
Ray Dalio, the founder of Bridgewater Associates, is another well-known billionaire who announced last year that he has some Bitcoin and Ethereum in his portfolio. This discovery came just a few months after he questioned the qualities of cryptocurrency as a store of value.
He has since altered his mind and now considers crypto asset investments to be “alternative money” in a world where “currency is trash” and inflation is losing purchasing power.
Dalio stated in late December that he was impressed with how long crypto has survived, before adding, “Cash, which most investors believe is the safest investment, is, in my opinion, the worst investment.”
Last year, billionaire hedge fund manager Paul Tudor Jones purchased Bitcoin as a hedge against inflation.
Pandemic-induced stimulus packages have generated economic chaos around the world, the consequences of which could last for decades. Inflation in the United States is at a four-decade high of 6.8 percent. As a result, the Consumer Price Index (CPI) has risen as the cost of everyday products continues to rise.
The billionaires are already recognizing the dangers of fiat currency and central bank manipulation and are rapidly resorting to digital assets. If the current trend continues, more wealthy investors may join their ranks in 2022.