Barry Sternlicht is the chairman of Starwood Capital Group and a billionaire. He shares his thoughts on how Bitcoin could reach a value of a million dollars per coin. He calls the cryptocurrency a “smart” hedge in a world where the government just keeps on printing money.
Barry Sternlicht, a Billionaire believes that Bitcoin could rise to $1 million per coin
Barry Sternlicht is the Chairman of Starwood Capital Group and a billionaire. He spoke to Bloomberg in Miami about the future prospects for cryptos, specifically bitcoin.
Sternlicht manages Starwood Capital Group which is a private equity group that specializes on real estate investments. There are approximately $100 billion of real estate assets, as well as debt and energy assets under the management of Starwood Capital Group. According to Forbes’ list of billionaires, his current net worth is $4.2 billion.
Noting that he has called his bitcoin position a “great hedge,” the billionaire was asked, “Is that how we all should be thinking?” Sternlicht firmly replied, “Yes.”
He explained that we live “In a world where the government just prints money, and prints money, and prints money, and prints money, and doesn’t seem to have any consequences.” Noting that “Sometimes, that will end,” the billionaire stressed:
The only thing that they can’t make more of is bitcoin.
He added that bitcoin has “never been hacked,” but noted that “It has no real value other than there’s 21 million coins” that are “infinitely divisible.”
In comparison, he pointed out that gold also “really doesn’t have a lot of 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 U.S., especially with our political isolationism, 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 Starwood Capital executive emphasized: “They are going to try really hard. It’s very obvious. They will try to break the dollar-standard. If that happens and the dollar devalues, you need one thing that could hold its value.”
While admitting that bitcoin “will go down with the stock market,” he stressed that in his opinion, “it will reverse,” elaborating:
One coin would be worth $1 million. It could do that because everyone, it’s not U.S. investors, 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.
The billionaire revealed then that cryptocurrency investments make up about 2% to 3.3% of his net wealth. Regarding crypto investment, he said: “If it goes to zero, it won’t hurt me either, it won’t hurt you.” However, he emphasized:
If it goes up to $1million a coin, then you will be very angry and look at your TV.
Bitcoin is being used by a growing number of billionaires to protect themselves from inflation.
Paul Tudor Jones was a famous hedge fund manager who stated in October that bitcoin is preferable to gold. Orlando Bravo, the billionaire who co-founded private equity firm Thoma Bravo, said in September that he is very bullish about bitcoin, expecting it to increase “significantly.”
Last week, Mexican billionaire Ricardo Salinas Pliego said the U.S. “is looking more and more like any other irresponsible third world country.” Salinas tweeted a weekly chart of the total value of the Federal Reserve’s assets (less eliminations from consolidation) and commented: “Wow…look at the scale of fake money creation. Buy bitcoin right now.”
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