Former exec of Goldman Sachs and CEO of Abra, Bill Barhydt, wants to allocate 25% of his personal portfolio for Bitcoin. He is not the first industry CEO who is interested in holding Bitcoin, but there are many enthusiasts in the crypto space.
In his tweet, Barhydt said,” I’m considering doubling the allocation of #Bitcoin in my personal portfolio to 25%.” After stating about his plan, he asked his followers whether it was a good idea or not. He got mixed responses from the users. Many believe a 25% allocation is less, and he should increase to 50% or more because it is the best time to HODL Bitcoin. Others say it may be a risky deal, but if its price will increase in the future, there would be a good return over it.
Currency Inflation is Surging
However, he also put factors that trigger him to allocate his portfolio for Bitcoin. According to him, currency inflation is increasing, which will result in price inflation. It is no doubt that currency inflation is increasing at an alarming rate thanks to banks’ money printers. In order to curb the negative effects of Coronavirus on the economy, central banks have reacted by increasing spending and printing cash. This is not only done by the Fed but by central banks across the world. So, investors are left with no choice to find a good hedging asset. Currently, Bitcoin and gold are the two best hedge investments.
Big Players Investment in Bitcoin
Barhydt argued that he took advice from hedge fund experts who told him not to expect stock returns in the next 5 years. Similarly, market volatility is “likely to be muted in the next 5 years.”
Real Vision CEO Raoul Pal also disclosed recently that his 50% net worth is in Bitcoin. Currently, he has dedicated 52% of net worth to the top digital asset. Pal discusses that Powell from Fed wants only inflation, but the devaluation of the US dollar is also waiting for him.
Anthony Pompliano, Partner at Morgan Creek Digital, has also allocated his 50% of net worth for Bitcoin.