Starwood Capital Group chairman billionaire Barry Sternlicht shared his view on how bitcoin could grow to the value of a million dollars per coin. He calls the crypto currency a “smart” hedge in a world where the government just keeps printing money.
Billionaire Barry Sternlicht Believes Bitcoin Could Rise to $ 1 Million in Currency
Billionaire Barry Sternlicht, chairman of Starwood Capital Group, spoke about the future outlook for cryptocurrencies, especially bitcoin, on Friday during a speech at a Bloomberg event in Miami.
Sternlicht runs Starwood Capital Group, a private equity firm that specializes in real estate investments. The company has about $ 100 billion under management in real estate, debt, and energy assets. According to Forbes’ list of billionaires, his current net worth is $ 4.2 billion.
Realizing that he called his bitcoin position a “big hedge,” the billionaire was asked, “Is that how we should all think?” Sternlicht replied firmly, “Yes.”
He explained that we live “in a world where the government only prints money, and prints money, and prints money, and prints money, and it doesn’t seem to have any consequences.” Noting that “Sometimes this will end,” the billionaire emphasized:
The only thing they can’t do is bitcoin.
He added that bitcoin “has never been hacked”, but noted that “It has no real value except there are 21 million coins” that are “infinitely divisible”.
By comparison, he stressed that gold also “really doesn’t have much value,” adding that “You can have your gold jewelry but it could be silver or titanium or platinum.”
Sternlicht opined: “You could see the world saying to the United States, especially with our political isolationism, they would say that China will try to get us out of the dollar standard, and they will have many countries aligned with them.”
The Starwood Capital executive stressed: “They’re going to work really hard. It’s very obvious. They’re really trying to break the dollar standard. If that happens and the dollar is devalued, you need one thing that could hold its value.”
Granted that bitcoin will “go down with the stock market”, he stressed that in his opinion, “it will be reversed”, elaborating:
It would go to $ 1 million per coin. It could do that because everyone, it’s not US investors, the whole world will look at one thing they can’t do more, and that would be bitcoin.
“There’s no function other than a store of value, so having some investment in bitcoin, I think, could be a smart hedge in your life because your paper will be worthless, unfortunately,” he warned.
The billionaire then revealed that he has about 2% to 3% of his net worth in cryptocurrencies. As for crypto investing, he said, “If it goes to zero, it won’t hurt me either, it won’t hurt you.” However, he emphasized:
But if it goes to $ 1 million for a coin, you’re going to watch TV and be very upset.
A growing number of billionaires are using bitcoin to protect 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 optimistic about bitcoin, expecting it to rise “significantly”.
Last week, Mexican billionaire Ricardo Salinas Pliego said the United States “looks more and more like any other irresponsible third world country.” Salinas encrypted a weekly chart of the total value of Federal Reserve assets (less deletions of consolidation) and commented: “Alas … look at the scale of creating counterfeit money. Buy bitcoin now.”
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