Thomas Peterffy, founder of Interactive Brokers Group, says he is scared because Bitcoin has no fundamental value. Investment guru Ray Dalio prefers gold due to concerns about the lack of privacy and tax burden of cryptocurrencies. Despite the concerns, Peterffy and Dalio maintain small amounts of cryptocurrencies in their portfolios. Peterffy advises allocating 2% to 3% of your portfolio to cryptocurrencies, which Dalio sees as a hedge against rising global debt.
In the wake of Microsoft shareholders' decision not to invest in Bitcoin, many non-coin users may be wondering whether Bitcoin has a place in any sensible portfolio. . According to billionaire Thomas Peterffy, it does exist, but only in moderation.
Related: VanEck's Altcoin Season Index hints at an impending Bitcoin boom
The founder of retail brokerage firm Interactive Brokers Group told Bloomberg in an interview that investors need to be cautious because of Bitcoin's volatility.
Peter Fee's company does not allow more than 10% allocation to BTC
With a net worth of US$53 billion (A$82.7 billion), Peterffy knows a thing or two about investing. Therefore, his recommendation is to invest only a small amount of your portfolio in cryptocurrencies.
I recommend people invest maybe 2% to 3% of their net worth in Bitcoin. For example, we do not allow anyone to invest more than 10% of their assets in Bitcoin. Because I think it's very dangerous.
thomas peterphy
Peterffy said most crypto investors are “in a sense scared” of the expected volatility. He also questioned the real value of cryptocurrencies by comparing them with fiat currencies.
It has no fundamental value. The only value is the same as paper money, nothing.
thomas peterphy
Interestingly, despite the fear of volatility and the apparent lack of fundamental value, Peterfie still believes everyone should acquire at least some Bitcoin.
I think everyone who doesn't have Bitcoin should have some Bitcoin, but too much is not a good thing.
thomas peterphy
Dalio worries about privacy and high tax payments
Legendary investor Ray Dalio recently expressed similar concerns. The founder of Bridgewater Associates told Investopedia that he prefers gold to cryptocurrencies.
Dalio said that while there are some benefits, he worries about privacy and paying too much in taxes, a point that many people can probably relate to.
The first reason I'm concerned about cryptocurrencies is privacy. The government knows exactly what you have and where it is, and it's also an effective way to tax it.
Ray Dalio
He also believes that cryptocurrencies have not really been proven as a hedge against inflation, saying they have a low correlation with inflation and “remain primarily a speculative vehicle.”
Related: No, Google's Willow Quantum Compute chip is not a threat to Bitcoin (yet)
Despite his concerns about cryptocurrencies and his preference for gold, Dalio, like Peterffy, still has a small amount of money in cryptocurrencies, perhaps “just in case there's an outbreak” or to hedge against rising global debt. is making investments.
I would like to stay away from debt assets such as bonds and debt and hold hard money such as gold and Bitcoin. […] A small portion of my portfolio is crypto assets.
Ray Dalio
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