The CEO of the consulting company Agecroft Partners believes that bitcoin has all the characteristics of a hedging asset and can help investors avoid inflationary risks.
In a conversation with CNBC, Don Steinbrugge touched on the topic of non-traditional investments and highlighted cryptocurrency as one of the promising tools:
“The development of this ecosystem is simply amazing, a fantastic technology. Some people use bitcoin to protect against inflation, ” he said during a discussion of the aggravation of the trade war between the United States and China.
He also noted that economic uncertainty creates some difficulties, and the issue of new money no longer gives the expected effect.
Steinbrugge believes that it is not worth investing in the stock market now, because it is very “overheated” and is at its peaks. He also advises against rushing to purchase bitcoin.
“Now bitcoin is too expensive. Its price is difficult to assess objectively, but the fact is that it will stay for a long time. I think that in the future this asset will become part of the portfolios of many hedge funds,” the analyst said.
At the end of last month, it became known that thanks to the growth of bitcoin, Bill Miller increased the assets of his hedge fund by 46% in the first two quarters of this year. In 2017, about half of the fund’s assets were invested in the first cryptocurrency. “In the future, his share in the fund will not exceed 50%. But this does not mean that we plan to sell it,” Miller said