Financial sector veteran George Ball believes that investors would be prudent in allocating a “small part” of their portfolio to cryptocurrencies – marking a major departure from their previous stance on digital assets.
In an interview with Yahoo Finance, Ball described cryptocurrencies as Bitcoin (BTC) as an “attractive” option for investors looking to hedge against currency devaluation. His comments were made while Congressional lawmakers were considering a $ 1.9 trillion relief bill that would provide up to $ 1,400 in direct stimulus payments to Americans impacted by Covid-19.
“I’ve never said that before and I’ve always been an opponent of blockchain, cryptocurrency and Bitcoin. But if you look now, the government cannot stimulate markets forever, the flood of liquidity will end, “said Ball.
He continued:
“With cryptocurrencies, I think there is a fundamental change in the hydra head that makes them attractive as a part, a small part, of almost any portfolio.”
If higher inflation leads to currency devaluation in the long run, Ball said, “then cryptocurrencies have great fascination”.
Ball, who served as president of Prudential Financial between 1982 and 1992, began to change his mind about Bitcoin in August 2020, when he told investors that now was the time to seek exposure to the digital asset. At the time, a Bitcoin was worth approximately $ 12,000. It is currently valued at just over $ 48,000.
Wall Street veterans, like Ball, are starting to like cryptocurrencies by watching Bitcoin make a 5x move in less than six months. Institutions like JPMorgan and Morgan Stanley are eyeing the Bitcoin market, while companies like BNY Mellon have already started custodying the digital asset.