George Ball, a veteran of the financial industry, believes that investors would be wise to invest a small portion of their portfolio in cryptocurrency, which is a big change from his previous stance on digital assets.

In an interview with Yahoo Finance, Ball described cryptocurrencies like Bitcoin (BTC) as an attractive option for investors looking to hedge against currency devaluation. His comments came as members of Congress considered a $1.9 trillion rescue package that would provide up to $1,400 in direct stimulus payments to Americans affected by Covid-19.

I’ve never said that before, and I’ve always been a blocker, a supporter of cryptocurrency and an opponent of Bitcoin. But if you look now, the government can’t keep stimulating the markets forever, the liquidity flow will stop, Mr Ball said.

He continued:

With cryptocurrencies, I think, there is a fundamental change in the hydra that makes them attractive as part, a small part, of almost any portfolio.

If higher inflation leads to a long-term depreciation of the currency, Ball said, cryptocurrency has a lot of appeal.

Mr Ball, who was chairman of Prudential Financial from 1982 to 1992, began changing his mind about Bitcoin in August 2020, when he told investors it was time to look for ways to invest in digital assets. At that time, a single Bitcoin was worth about $12,000. It is currently valued at just over $48,000.

Veterans of Wall Street, like Ball, are warming up to cryptocurrencies by watching Bitcoin take a 5x jump in less than six months. Organizations like JPMorgan and Morgan Stanley are watching the Bitcoin market, while companies like BNY Mellon have already started owning the digital asset.

frequently asked questions

IsBitcoin a good protection against inflation?

Bitcoin seems to be a good protection against inflation because, unlike government-issued cash currencies such as the US dollar, the British pound and the euro, the supply of cryptocurrencies is limited. As a general rule, limited supply and strong demand lead to higher prices.

Is a crypt a good hedge?

Some investors claim that Bitcoin (BTC) currently offers better protection against inflation than gold. This is wrong for two reasons: (1) high inflation is unlikely and (2) cryptocurrencies are too volatile to be considered a hedge against anything. Conclusion: Don’t justify your risk by saying it’s a risk cover.

Does Bitcoin have an impact on other cryptocurrencies?

In the cryptocurrency market, correlation can be applied to all assets at once. … Bitcoin experienced such a crash in 2018, and all other cryptocurrences followed soon after. This is just one example of how the price of bitcoin affects other altcoins. Experts say Bitcoin has the biggest impact on Ethereum.

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