The chairman of the investment firm Sanders Morris Harris, George Ball, says cryptocurrencies are an effective hedge against currency devaluations. In addition, cryptocurrencies are attractive as a small part of portfolios.
George Ball advocates crypto as a hedge against currency devaluation
George Ball spoke about Bitcoin and other cryptocurrencies in an interview with Yahoo Finance last week. He described two main reasons why cryptocurrencies are ideal targets for investments by wealthy individuals and institutional investors today.
Ball currently serves as the chairman of the investment firm Sanders Morris Harris, a dual-registered broker-dealer and RIA firm founded in 1987. Parent company Tectonic Financial manages customer assets of around $ 4 billion. He was a former CEO of Bache & Co. (later Prudential Securities), which had been bought by Prudential Insurance Company of America, where he served as a member of the Executive Office.
He argued that cryptocurrencies would provide an effective hedge against the devaluation of the fiat currency, stating:
In the longer term, when inflation is back, when we start to devalue the currency heavily, then cryptocurrencies have great appeal.
His comments came as Washington voted on the $ 1.9 trillion stimulus package that was passed over the weekend. A number of analysts, including JPMorgan’s, have warned of the risk of currency devaluation from the adoption of such a large stimulus package.
Ball believes that cryptocurrencies are “attractive” as a “small part” of any portfolio. Sanders Chairman Morris Harris was quoted as saying:
I think there is a fundamental shift towards hydra in cryptocurrencies that makes them attractive as part, as a small part, of almost any portfolio.
In addition, he believes the increase in retailers speculating on stocks could drive crypto prices higher and expects them to switch to cryptocurrencies if they start taking losses in the stock market. “If investors want to lose money in common stocks but still want to speculate, I think cryptocurrencies will be the logical and likely closest focus of their combined, individually small but combined, very large dollars,” he said.
Ball had been a bitcoin skeptic until last August when he told investors it was time to buy bitcoin. “I’ve never said that before and I’ve always been an opponent of blockchain, cryptocurrency and bitcoin. But if you look now, the government cannot stimulate the markets forever, the flood of liquidity will end, ”the executive said.
Do you agree with George Ball? Let us know in the comments below.
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