The number of billionaires who have invested in crypto increased in 2021. The trend could continue into 2022 as fears over fiat intensify.
A significant number of billionaires bought cryptocurrencies in the year 2021. The growing fear of fiat inflation that’s expected to continue through 2022 has turned investors who were previously anti-crypto Bitcoin and other assets into a hedge against fiat currency inflation.
According to a Bloomberg report, Hungarian-born billionaire Thomas Peterffy has said it was wise to have 2-3% of one’s portfolio in crypto assets. He added that fiat currencies might “go to hell.” Peterffy, whose company Interactive Brokers Group Inc. (IB) is said to be worth $25 billion, launched crypto trading in the middle of 2020 after clients’ demand for the asset class skyrocketed. The IB currently offers Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. In January this year, they will add 5-10 more coins to the roster.
Bitcoin at 1 million dollars
The Billionaire, who is said to hold an unspecified amount of digital assets himself, has said during New Year’s Day it was possible that digital assets could reap “extraordinary returns” even if the opposite was true. During the interview, he stated:
“I think it can go to zero, and I think it can go to a million dollars […] I have no idea.”
Ray Dalio of Bridgewater Associates is another Billionaire founder who recently ventured into the cryptocurrency craze. The former crypto critic who once questioned the value of cryptocurrencies as a store of value recently shared that his portfolio contained some Bitcoin and Ethereum.
Cash is trash
After an apparent change of heart and mind regarding crypto investments as an alternative for fiat currency, he went on to say “cash is trash,” and high inflation was reducing buying power. Commenting, he told CNBC in September 2021:
“Cash, which most investors think is the safest investment is, I think, the worst investment.”
Billionaire hedge fund manager Paul Tudor Jones is another new voice supporting cryptocurrencies as a store of value. He bought his Bitcoin in 2021. The Covid-19-induced stimulus packages have resulted in economic havoc worldwide. The repercussions could last decades.
The US inflation rate hit a record high of almost 7%, leading to a surge in the Consumer Price Index (CPI) as the prices of high turnover goods continue to rise. 2022 could see other wealthy investors joining the ranks of Jones, Peterffy, and Dalio if the trend continues.
Tom is a long-serving freelance writer who specializes in the blockchain and cryptocurrency niche. You may even call him a crypto-enthusiast with over 10-years’ experience in content creation, blog writing, and SEO. He is a philosophical figurehead who believes that to make our world a better place, we must invest in incorruptible products and procedures, of which Bitcoin and other cryptocurrencies are leading examples.