Horizon Kinetics, one of the best-performing fund managers in the US this year, chooses Bitcoin (BTC) as one medium to protect its investors against currency debasement.
In an interview with the Financial Times, Peter Doyle, one of the co-founders of the US$7 billion investment company, expressed concern over rapidly growing debt fuelled by government response to the Covid-19 pandemic. Doyle fears this will eventually result in global inflation, which is why investors need to protect their portfolios.
There is no turning back after the pandemic and globally there is a debt problem, and it means either default or currency debasement.Peter Doyle, Horizon Kinetics
Horizon Bets on Bitcoin and Property
Horizon Kinetics is betting on property and Bitcoin to protect its investors, according to the Financial Times article. Bitcoin has a limited supply of 21 million, and therefore it is bound to be scarce.
People should have exposure to the asset class.Peter Doyle
Having reportedly invested one percent of its Paradigm fund to Grayscale Bitcoin Trust in 2016, today Horizon’s Bitcoin investment represents a tenth of the fund. The company offers investors exposure to Bitcoin via the fund, which as of July 26 had gained 47.76 percent despite the recent market crash.
Bitcoin has garnered lots of attention, especially from institutional investors, for the sole purpose of hedging against inflation. This is the same reason that drew MicroStrategy to Bitcoin, and it is currently the largest corporate BTC investor. US Senator Cynthia Lummis also believes in Bitcoin as a safe haven and hopes to bring BTC to the “national conversation”.
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