Key Takeaways:
- Bitcoin could hit $1 million in the long run, predicts billionaire Barry Sternlicht
- He calls the cryptocurrency a “smart” hedge against inflation and money printing
Barry Sternlicht Praises Bitcoin as an Inflation Hedge
Barry Sternlicht, a billionaire and a real estate magnate, praised bitcoin and said he’s optimistic about the future of cryptocurrency. At a Bloomberg event, the businessman said he viewed his bitcoin position as a “smart hedge” and a “great hedge” against inflation.
He emphasized bitcoin’s attributes as an inflation hedge as he mentioned that we live in a world where governments just “print money” with no consequences.
“The only thing that they can’t make more of is bitcoin,” Mr. Sternlicht said, referring to the fixed amount of 21 million bitcoin tokens. “They would say China is going to try to knock us off the dollar standard, and they are going to have a lot of countries aligned with them.”
The billionaire went further to explain that if other countries tried “really hard” they could “break the dollar standard.” He added that “if that happens and the dollar devalues, you need one thing that could hold its value.”
“It Would Go to $1 Million a Coin,” Sternlicht Says
On that note, he turns to bitcoin as a place to find value and store of wealth. “It would go to $1 million a coin,” Mr. Sternlicht said about bitcoin. “It could do that because the whole world will look at one thing that they can’t make more of and that would be bitcoin.”
“There’s no function other than a store of value. So having a little investment in bitcoin, I think, might be a smart little hedge in your life because your paper will be worthless, unfortunately,” he warned.
Barry Sternlicht is the founder and chairman of Starwood Capital Group, an investment firm with about $100 billion in assets under management. His company has been at the top of real estate dealmaking for over 30 years. His net worth, on the other hand, is estimated to be over $4 billion.
Sternlicht Joins the Club of Pro-Bitcoin Billionaires
With this in mind, Mr. Sternlicht disclosed he has about 2% to 3% of his net worth invested in bitcoin. That puts Mr. Sternlicht in the club of billionaires looking to bitcoin as an investment and a hedge against inflation.
More specifically, hedge fund managers like George Soros, Paul Tudor Jones, Ray Dalio, and Stanley Druckenmiller have invested in bitcoin. To this end, be sure to check our bitcoin buying guide. In it, you’ll see how easy it is to become a holder and a crypto investor.