Financial sector veteran George Ball believes investors would be wise to allocate a ‘small portion’ of their portfolio to cryptocurrencies, which is a significant departure from its previous stance towards digital assets .
In an interview with Yahoo Finance, Ball described cryptocurrencies such as Bitcoin (BTC) as an ‘attractive’ option for investors looking to hedge against currency depreciation. His remarks come as lawmakers in Congress eased a $ 1.9 billion bill that would result in $ 1,400 in direct incentive payments to Americans affected by Covid-19.
‘I’ve never said that before and have always been a blockchain, cryptocurrency and Bitcoin opponent. “If you look now, the government can not stimulate markets forever, the liquid flood will end,” Ball said.
He continues:
“With the cryptocurrencies, I think, there’s a fundamental hydro-head move that makes them attractive as a part, a small part, of almost any portfolio.”
If higher inflation leads to currency depreciation over the long term, Ball said, “then cryptocurrencies have a big appeal.”
Ball, who served as chairman of Prudential Financial between 1982 and 1992, began modifying his change to Bitcoin in August 2020 when he informed investors that now was the time to seek exposure to the digital asset. At the time, a Bitcoin was worth about $ 12,000. It is currently valued at just over $ 48,000.
Wall Street veterans like Ball are excited about cryptocurrencies as they have seen Bitcoin pull a 5x move in less than six months. Institutions like JPMorgan and Morgan Stanley are watching the Bitcoin market, while companies like BNY Mellon have already started preserving the digital asset.