Starwood Capital Group chairman, billionaire Barry Sternlicht, shared his take on how bitcoin could reach $ 1 million per coin. He calls the cryptocurrency a “smart” hedge in a world where the government keeps printing money.
Billionaire Barry Sternlicht Believes Bitcoin Could Reach $ 1 Million Per Coin
Billionaire Barry Sternlicht, chairman of Starwood Capital Group, spoke about the future prospects of cryptocurrencies, particularly bitcoin, on Friday during a speech at a Bloomberg event in Miami.
Sternlicht heads Starwood Capital Group, a private equity firm specializing in real estate investments. The company manages around $ 100 billion in real estate, debt and energy assets. According to Forbes’ Billionaire List, his current net worth is $ 4.2 billion.
Noting that he called his bitcoin stance a “big hedge,” the billionaire was asked, “Is this how we should all think? Sternlicht firmly replied: “Yes.”
He explained that we live “in a world where the government just prints money, and prints money, and prints money, and prints money, and it doesn’t seem to have consequences. Noting that “Sometimes it will end,” the billionaire pointed out:
The one thing that they can’t do anymore is bitcoin.
He added that bitcoin had “never been hacked”, but noted that “it has no real value other than there are 21 million coins” which are “infinitely divisible”.
In comparison, he pointed out that gold “really doesn’t have much value,” adding that “You can have your jewelry in gold, but it can be silver, titanium, or platinum.”
Sternlicht said, “You could see the world saying to the United States, especially with our political isolationism, they would say China is going to try to knock us off the standard dollar, and they are going to have a lot of countries lined up with them. “
The Starwood Capital executive stressed, “They are going to try very hard. It is very obvious. They will try very hard to break the dollar norm. If that happens and the dollar devalues, you need something that can hold its value. “
While admitting that bitcoin “will go down with the stock market“, he stressed that in his opinion, “it will reverse”, adding:
It would go to $ 1 million apiece. He could do it because not everyone, it’s not American investors, the whole world will be looking at one thing that they can’t do anymore and that would be bitcoin.
“There is no function other than a store of value, so investing a little bit in bitcoin, I think, could be a clever little hedge in your life because your paper will unfortunately be of no value.” he warned.
The billionaire then revealed that he held around 2% to 3% of his net worth in cryptocurrencies. Regarding investing in crypto, he said: “If it hits zero, it won’t hurt me either, it won’t hurt you.” However, he pointed out:
But if that hits $ 1 million a piece, you’re going to watch TV and get upset.
A growing number of billionaires are using bitcoin to hedge against inflation.
Renowned hedge fund manager Paul Tudor Jones said in October that he preferred bitcoin to gold. Orlando Bravo, the billionaire who co-founded private equity firm Thoma Bravo, said in September that he was very bullish about bitcoin, expecting it to rise “significantly”.
Mexican billionaire Ricardo Salinas Pliego last week said that the United States “looks more and more like any other irresponsible third world country.” Salinas tweeted a weekly chart of the Federal Reserve’s total asset value (minus consolidation eliminations) and commented, “Wow… look at the extent of the creation of counterfeit money. Buy bitcoin now.
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