George Ball claims that crypto is an effective hedge against currency debasement as the US passes a $1.9 trillion stimulus bill.
The chairman of Sanders Morris Harris, George Ball, says that cryptocurrencies are an effective hedge against currency debasement. Furthermore, he states that cryptocurrencies are attractive as a small part of portfolios.
He talked about Bitcoin and other cryptocurrencies in an interview last week with Yahoo Finance. He described two reasons why cryptocurrencies are now the ideal targets for investments by rich individuals and institutional investors.
Ball is now the chairman of investment firm Sanders Morris Harris, a registered broker and RIA firm established in 1987. Tectonic Financial, its parent company, has around $4 billion in client assets under management. He was a former CEO of Bache & Co., which had been purchased by Prudential Insurance Company of America where he had served as a member of the Executive office.
He debated that cryptocurrencies will be an effective hedge against the debasement of fiat currency, saying:
“Longer-term, if inflation is back, if we start to debase the currency badly, then the cryptocurrencies have a great deal of allure.”
His comments came as Washington voted on the $1.9 trillion stimulus package which passed over the weekend. Several analysts, including the ones from JPMorgan, have warned about the currency debasement risk from the passage of a huge stimulus relief package.
Ball believed cryptocurrencies are “attractive” as a “small part” of any portfolio. The Sander Morris Harris chairman was quoted as saying:
“With the cryptocurrencies, I think there is a fundamental hydra-headed shift that makes them attractive as a part, a small part, of almost any portfolio.”
Furthermore, he believed the increase in the retail traders could push crypto prices higher, allowing them to move to cryptocurrencies if they start to face losses in the equity market.
“If the investors are losing money in common stocks, but still want to speculate, then the cryptocurrencies I think will be the logical and likely next focus of their combined, individually small, but combined very large dollars,” he claimed.
Ball had been doubtful of Bitcoin until last August when he said to the investors that it was time to buy bitcoin.
“I’ve never said this before, and I’ve always been a blockchain, cryptocurrency, and bitcoin opponent. But if you look now, the government cannot stimulate markets forever, the liquidity flood will end,” he explained.
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