George Ball, chairman of the investment company Sanders Morris Harris, said that cryptocurrency is an effective hedging tool to prevent currency devaluation. In addition, he said that cryptocurrencies are attractive as a small part of the investment portfolio.
George Ball advocates the use of cryptocurrency as a hedge against currency depreciation
George Ball talked about Bitcoin and other cryptocurrencies in an interview with Yahoo Finance last week. He described two main reasons why cryptocurrency is now an ideal investment target for wealthy people and institutional investors.
Ball is currently the chairman of Sanders Morris Harris, an investment company, a dual-registered broker and RIA company founded in 1987. Its parent company, Tectonic Financial, manages approximately US$4 billion in customer assets. He was the CEO of Bache & Co. (later Prudential Securities), which was later acquired by the American Prudential Insurance Company and served as a member of the executive office.
He believes that cryptocurrency will be an effective hedge against the devaluation of legal tender, and pointed out:
In the long run, if inflation picks up, if we start to severely depreciate currencies, then cryptocurrencies are very attractive.
He made the comments when Washington voted on the $1.9 trillion stimulus plan passed over the weekend. Many analysts, including JPMorgan, have warned that passing such a huge stimulus package will lead to the risk of currency depreciation.
Bauer believes that cryptocurrencies are “attractive” as a “small part” of any investment portfolio. To quote the chairman of Sanders Morris Harris:
For cryptocurrencies, I think there is a fundamental shift in mind that makes them attractive as a small part of almost all investment portfolios.
In addition, he believes that the increase in retail traders engaged in stock speculation may push up the price of cryptocurrencies, and expects that if they start to face losses in the stock market, they will switch to using cryptocurrencies. He said: “If investors lose money in common stocks but still want to speculate, then I think cryptocurrencies will be their combined, individual, but combined very large dollar, the logical and possible next focus. “
Bauer has been skeptical of Bitcoin until August last year when he told investors that the time had come to buy Bitcoin. “I have never said before. I have always been an opponent of blockchain, cryptocurrency and Bitcoin. But if you look at it now, the government cannot stimulate the market forever, and the flood of liquidity will end.” The executive explained.
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