Contrarian Investment Firm Says Cryptocurrency Investment Can Combat Currency Debasement
August 09 2021 - 12:30PM
NEWSBTC
A $7 billion firm recently advised that land and cryptocurrency are
two assets that can combat currency debasement. In addition, the
contrarian investment company is telling investors that crypto
assets will help them more to face the growing economic challenges
worldwide. During a discussion, the co-founder of Horizon Kinetics,
Peter Doyle, stated that the global pandemic and the high debts
looming above different economies would bring an “Inflection point”
for the global economy. According to Doyle, there is no other
option to handle these issues except currency debasement or
default. Related Reading | Vitalik Buterin Urges Ethereum To
Grow Beyond DApps In 2016, the investment firm allocated 1% into
the “Grayscale’s Bitcoin Trust.” Now, that 1% investment is now
accounting for 10% of its portfolio. As a result, Doyle believes
that people should have access to this asset class. He mentioned
that Bitcoin had capped its supply given the concerns about
currency debasement. He also stated that knowledgeable long-term
investors usually focus on concentrated portfolios & low
turnover in their holdings because they allow the companies to grow
to compound returns. Horizon Kinetics Investments And
Cryptocurrency Endorsement Morningstar reports that Horizon
Kinetics is the third amongst the top ten best performing mutual
funds in 2021. Also, the company has amassed and benefitted a lot
from a large number of long-term investments in real estate
developers and landowners in North America. Some of their
investment returns come from include Brookfield Asset Management,
Texas Pacific Land, and Dream Unlimited. All these investments are
different from the 1% invested in the Grayscale Bitcoin Trust,
representing 10% of its portfolio. Horizon Kinetics focuses on
moving in the opposite direction of where other investors are
focusing as contrarian investors. According to the firm, they
research deep into the industries to pursue only value-driven
investments. Related Reading | American Banks Encouraged To Partner
with Cryptocurrency Firms For instance, the firm had owned Texas
Pacific Land since 1994, when the firm emerged. This is the same
approach they use for bitcoin. During the cryptocurrency market
crash, three funds under Horizon Kinetics are still the top
performers in 2021. Small-Cap, Spin-off & Corporate
Restructuring, These funds made more than 50% gains for the firm in
2021. Following an upward trajectory, the crypto market marks a %4
gain | Source: Crypto Total Market Cap on TradingView.com Another
of its funds, the “Kinetics Paradigm fund,” has also made gains of
48% for this asset manager. This is why the firm is placed amongst
the top ten mutual funds in the industry. Before now, there was a
report from Guardtime, a blockchain firm in Europe, saying that the
governments are becoming more interested in establishing CBDCs
(central bank digital currencies). The firm also predicted that a
CBDC might become available in three years because the coronavirus
has changed many things, even down to how people use money.
Featured image from Pixabay, chart from TradingView.com
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