Billionaires buy cryptocurrencies “purely in case classic money goes to hell”

Until recently, they compared them to a “jihadist campaign against the dollar”, paid for advertisements about their danger, and now they are turning the tables…

In 2017, Thomas Peterffy paid for a full-page ad in the Wall Street Journal, warning of the dangers that cryptocurrencies pose to capital markets.

These days, the Hungarian billionaire is well versed in cryptocurrency.

Peterffy, “worth” 25 billion dollars, said that it is wise to have two to three percent of the wealth in cryptocurrencies, just in case “normal” currencies go to hell.

“It is possible that they will perish and skyrocket.”

He owns some himself, while his company Interactive Brokers Group Inc. recently offered customers the opportunity to trade Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, after discovering that their clients are in a hurry to get involved in the action.

Peterffy(77) said that Interactive Brokers from Greenwich, Connecticut, will offer the possibility of trading with five to 10 more cryptocurrencies starting this month.

“It is possible that cryptocurrencies could achieve extraordinary returns – even if the opposite is true,” Peterffy said.

“I think it can(value) fall to zero, and I think it can go to a million dollars,” he said in an interview. “I have no idea.”

Turning the plate

His approach highlights a shift in attitudes toward cryptocurrency by investors who once despised or were wary of digital tokens, but realized, especially in 2021, that they could not afford to risk missing out on big gains.

Even as prices fluctuated wildly, large and small investors dived into Bitcoin and Ethereum, as well as irreplaceable tokens and other cryptocurrencies.

Ray Dalio recently revealed that he has at least some Bitcoin and Ethereum in his portfolio just a few months after questioning the usefulness of cryptocurrencies as a way to store wealth.

The founder of Bridgewater Associates sees investment as alternative money in a world where “cash is rubbish” and inflation undermines purchasing power.

Paul Tudor Jones revealed that he invested in cryptocurrencies as protection against inflation, and almost half of the family offices with which Goldman Sachs Group Inc. does business. was interested in adding digital currencies to its portfolios, according to a recent bank survey.

The penetration of “mainstream” finance is growing

Cryptocurrencies are increasingly penetrating mainstream finance, albeit with shared success.

ProShares launched the first American bitcoin futures ETF, which attracted more than a billion dollars in two days before the inflows dissipated and the price fell since its debut in October.

Crypto enthusiasts are still hoping that US regulators will approve the ETF that actually holds Bitcoin in 2022.

Better yet, Coinbase Global Inc. has gone public and now has a market value of $54 billion.

Its founder, Brian Armstrong, is “heavy” at $9.7 billion, according to the Bloomberg Billionaires Index.

So much money is being pumped that it will be hard to fall

Michael Novogratz, who runs Galaxy Digital, said last month that prices could fall in the short term.

There was a lot of “foam” in the markets of 2021, Novogratz told Bloomberg, while retail investors were accumulating in NFTs and following unusual cryptocurrencies.

The New York-based digital “prophet” also predicted that Bitcoin would not fall below $42,000.

Bitcoin closed the year at about $46,300.

“So much money is pouring into this space that it would not make sense for the prices of cryptocurrencies to be much lower than that,” Novogratz said.

Jesse Powell, the chief executive of the Kraken cryptocurrency exchange, admits that prices could fall, but said on Bloomberg TV on December 14 that any move below $40,000 is a “purchase opportunity”.

He quickly admits that he is not always right. In August, he predicted that prices would reach $100,000 per coin in 2021.

Pragmatism above all

There is still a lot of skepticism on Wall Street from both the ultra-rich and pragmatists.

Ken Griffin of the Citadel recently described the craze for accepting cryptocurrencies as a “jihadist campaign” against the US dollar.

But Griffin said his firm would also trade cryptocurrencies if there were more regulations.

Jamie Dimon of JPMorgan Chase & Co. called Bitcoin “worthless” in October, but that happened even when the New York-based banking giant was increasingly hiring to help its clients trade digital currencies.

Chris Jordan

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