The veteran of the financial sector, George Ball, believes that it would be prudent for investors to allocate a “small part” of their investment portfolio to cryptocurrencies, which is a major change from your past stance on digital assets.
In an interview with Yahoo Finance, Ball described cryptocurrencies like Bitcoin (BTC) as an “attractive” option for investors looking to hedge against the currency’s devaluation. His comments came at a time when lawmakers in the U.S. Congress were studying a $ 1.9 trillion aid bill that would provide up to $ 1,400 in direct stimulus payments to Americans affected by Covid-19. .
“I have never said this before, and I have always been a detractor of blockchain, cryptocurrencies and Bitcoin. But if you look now, the government cannot stimulate the markets forever, the flood of liquidity will end,” Ball said.
“With cryptocurrencies, I think there is a fundamental change in the hydra head that makes them attractive as a part, a small part, of almost any investment portfolio.”
“If rising inflation leads to long-term currency devaluation then cryptocurrencies have great appeal,” Ball said.
Ball, who was president of Prudential Financial between 1982 and 1992, He began to change his mind on Bitcoin in mid-August 2020, when he told investors that it was time to seek exposure to the digital asset. At that time, a Bitcoin was worth approximately $ 12,000. It is currently valued at just over $ 48,000.
Wall Street veterans like Ball are getting excited about cryptocurrencies as they have seen Bitcoin make a 5-fold move in less than six months. Institutions like JPMorgan and Morgan Stanley are targeting the Bitcoin market, while companies like BNY Mellon have already started to guard the digital asset.