Billionaire Executive Urges Investors to Hold BTC, But Not ‘Too Much’
- Founder of Interactive Brokers Group, Thomas Peterffy, says that Bitcoin has no underlying value and scares him.
- Investing guru Ray Dalio worries about a lack of privacy and the tax burden of crypto, preferring gold.
- Despite their concerns, both Peterffy and Dalio hold small amounts of crypto in their portfolios.
- Peterffy advises allocating no more than 2% to 3% of one’s portfolio to crypto, while Dalio views it as a hedge against growing global debt.
After Microsoft shareholders decided not to invest in Bitcoin, many no-coiners might be wondering whether Bitcoin has a place in a sensible portfolio. According to billionaire Thomas Peterffy, it does, but in moderate quantities only.
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Speaking to Bloomberg, the founder of retail brokerage Interactive Brokers Group Inc., said that investors should be careful due to Bitcoin’s volatility.
Peterffy’s Firm Won’t Allow More Than 10% Allocation to BTC
With a net worth of US$53 billion (AU$82.7 billion), Peterffy knows a thing or two about investing. So, his recommendation is to put only a small amount of one’s portfolio into crypto.
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I would recommend that people put maybe 2% to 3% of their net worth into Bitcoin. We for example will not allow anyone to invest more than 10% of their assets into Bitcoin because I think that would be very dangerous.
Thomas Peterffy
Peterffy said he is “sort of scared” of the volatility that most crypto-degens have learned to expect. He also questioned the real value of cryptocurrencies, comparing them to fiat currency.
It doesn’t have any underlying value. The only value it has is the same as the paper dollar, which is nothing.
Thomas Peterffy
Despite his fear of volatility and the apparent lack of underlying value, interestingly Peterffy still believes everyone should get at least some Bitcoin.
I think anybody who does not have Bitcoin should have some Bitcoin, but not too much.
Thomas Peterffy
Dalio Worried About Privacy and Paying Too Much Tax
Recently, investing legend Ray Dalio echoed similar concerns. Speaking to Investopedia, the Bridgewater Associates founder said he prefers gold over crypto.
Dalio explained that despite having some merit, he is concerned about privacy and paying too much tax, a point many probably can relate to.
The reason I’m concerned about crypto is, first of all, privacy. The government knows exactly what you’ve got, where it is, and it’s also an effective way of taxing it.
Ray Dalio
He also thinks it hasn’t really proven itself as a hedge against inflation, saying that crypto doesn’t correlate well with inflation and is “still largely a speculative vehicle”.
Related: No, Google’s Willow Quantum Compute Chip Not a Bitcoin Threat (Yet)
Despite his concerns about crypto and a preference for gold, Dalio, like Peterffy, still has a small allocation in crypto, probably “just in case it catches on” – or to hedge against growing global debt.
I want to steer away from debt assets like bonds and debt, and have some hard money like gold and bitcoin. […] I have a small percentage of my portfolio in crypto.
Ray Dalio
