The prestigious hedge fund Horizon Kinetics recommends investing in cryptocurrencies and digital assets as a potential hedge against fiat currency inflation.
Horizon Kineticsbased in the United States, is one of the most prestigious and successful hedge funds in the world, which is betting on the industry of cryptocurrencies and technology blockchain. peter doyleone of the founders of Horizon Kinetics and a veteran in the world of financial investments, said Financial Times that investors who want to secure their future should invest part of their capital in crypto assets, which offer an efficient way to protect their investors against rising inflation.
Doyle explained that debt levels in the United States have skyrocketed since the arrival of the pandemic, and that they will continue to do so in the future, so it is advisable to diversify investment portfolios and include cryptocurrencies.
“There is no turning back after the pandemic and globally there is a debt problem that means default or currency debasement”Doyle declared.
Horizon Kinetics is a hedge fund founded in 1994 by Peter Doyle and Murray Stahl, who have over 30 years of investment experience. This fund has more than $7 billion in combined assets under management from its 9 mutual funds. Of these funds, 3 are the best performers and performers this year, with gains of more than 50%, the Financial Times reported.
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Participation through Grayscale Bitcoin Trust
Horizon Kinetics executives recommend investors enter the cryptocurrency ecosystem through Grayscale Investment’s investment fund, the Grayscale Bitcoin Trust (GBTC). Indeed, Doyle explained that an initial investment of 1% of his Paradigm fund assets made in 2016 has morphed into 10% of his fund today, highlighting the growth potential of crypto assets over time.
“People should have exposure to (this) asset class”Doyle said.
The investment expert highlighted that one of the greatest advantages of Bitcoin, as an investment asset and store of value, is its scarcity. It is worth remembering that BTC was designed as a limited issue digital currency, so there will only be 21 million coins in the world.
Inflation levels not seen since 2008
Horizon Kinetics’ cryptocurrency investment recommendations, and its concerns about inflation levels in the country, come amid rumors that the United States is possibly considering printing a new monetary stimulus package to revive the economy.
The massive printing of dollars during 2020, as the newspaper El Mundo explains, triggered inflation in the country to its highest level since 2008, causing the prices of food in the basic basket and of other goods and products, such as automobiles. secondhand, grow up from 2% to 10%, respectively; something that clearly hurts lower and middle class citizens in the country.
Horizon Kinetics points out that this level of inflation is not temporary, so the dollar will continue to weaken in the future.
In addition to this prestigious hedge fund, JPMorgan and Goldman Sachs they are also opening the doors to investment in cryptocurrencies and digital assets. investment management company black rock it also allows its clients to invest in Bitcoin through two of its funds. Likewise, the venture capital firm Andreessen-Horowitz It recently launched a $2.2 billion fund to boost the crypto industry.
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