It was the year 2017 when Thomas Peterffy warned in the Wall Street Journal about the risks to capital markets of bitcoin futures.
Today the Hungarian-born billionaire is giving pro-crypto advice. Peterffy, whose fortune stands at $25 billion, says it’s wise to hold 2-3% of one’s wealth in cryptocurrencies, just in case fiat currencies hit the ground.
Peterffy himself has some cryptocurrencies in his possession, and his company, Interactive Brokers, recently enabled its clients to trade in Bitcoin, Ethereum, Litecoin, and Bitcoin Cash, as it found it to be a ”mandatory” request.
The 77-year-old Peterffy said, in fact, that Interactive Brokers will offer trading capability for an additional 10 cryptocurrencies this month. He admitted that it is possible that cryptocurrencies can yield excellent returns – although the opposite is also true. “I think it can go to zero and I think it can go to $1 million,” he said in an interview. “I have no idea.”
Peterffy’s approach highlights the change in attitude in favor of crypto investors who once despised or worried about digital tokens but realized, especially in 2021, that they cannot risk losing out on potentially huge gains.
Ray Dalio recently revealed that he has some bitcoin and ethereum in his portfolio – just a few months after he questioned the usefulness of cryptocurrencies as a means of storing wealth. The Bridgewater Associates founder sees this investment as alternative money in a world where “cash is junk” and inflation is eroding purchasing power.
Paul Tudor Jones revealed that he has invested in crypto to hedge against inflation, while almost half of the family wealth management firms Goldman Sachs works with are interested in adding digital currencies to their portfolios, according to a recent bank survey.