The prestigious hedge fund Horizon Kinetics recommends investing in cryptocurrencies and digital assets as a potential hedge against fiat currency inflation.
Horizon Kinetics, based in the United States, is one of the most prestigious and successful hedge funds worldwide, which is betting on the securities industry. cryptocurrencies, and technology blockchain. Peter Doyle, one of the founders of Horizon Kinetics and a veteran in the world of financial investments, said The Financial Times said that investors who want to secure their future should invest part of their capital in cryptoassets, 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 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 said.
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 over $7.000 billion in combined assets under management, from its 9 mutual fundsOf these funds, three are the best performers and outperformers this year, with gains of more than 3%, the Financial Times reported.
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Participation through Grayscale Bitcoin Trust
Horizon Kinetics executives recommend that investors enter the cryptocurrency ecosystem through Grayscale Investment's investment fund, the Grayscale Bitcoin Trust (GBTC). In fact, Doyle explained that an initial investment of 1% of the assets of his Paradigm fund made in 2016 has transformed into 10% of his fund today, highlighting the growth potential of cryptoassets over time.
“People should have exposure to (this) asset class”, Doyle said.
The investment expert highlighted that one of the biggest 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 ever be 21 million coins in the world.
Inflation levels not seen since 2008
Horizon Kinetics’ cryptocurrency investment recommendations and concerns over inflation levels in the country come as rumors swirl 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 explained by the newspaper El Mundo, triggered inflation in the country to its highest level since 2008, causing the prices of basic food basket foods and other goods and products, such as second-hand cars, to rise. grew up from 2% to 10%, respectively, which clearly harms the country's lower and middle class citizens.
Horizon Kinetics notes that this level of inflation is not temporary, and that the dollar will continue to weaken in the future.
In addition to this prestigious hedge fund, JPMorgan y Goldman Sachs are also opening the doors to investment in cryptocurrencies and digital assets. The investment management company BlackRock Bitcoin also allows its clients to invest in Bitcoin through two of its funds. Likewise, the venture capital firm Andreessen Horowitz recently launched a $2.200 billion fund to boost the crypto industry.
Continue reading: JPMorgan reports that all its clients can now invest in cryptocurrencies
