Jul 5, 2022 at 05:12Billionaire, investor, and CEO of Baupost Group Seth Klarman criticized digital assets and said they, compared to gold, would be useless during an economic crisis. By the way, many consider him the spiritual follower of Warren Buffett. Maybe we should listen to him.
In particular, the billionaire advocated for the U.S. dollar and recalled that the country connected with this has a considerable advantage. The dollar has been the world’s reserve currency for a long time, and, as he is sure, it’s unlikely to change anytime soon.
“It’s hard to imagine people accepting Chinese currency, it’s hard to imagine people accepting cryptocurrency. There are just too many uncertainties,” he said.
The investor thinks the only value is gold. And “if the world turns to hell,” the gold helps people know how much something costs. Seth Klarman hopes this never happens but thinks it’s wise to have a small part of your portfolio in gold if it does. As for cryptocurrencies, according to him, they make no sense at all. He compared it to
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“It has this feel of being like catnip for techies. Why do people need 10 or 50 different cryptocurrencies? I don’t get it. I don’t think anybody needs to own it. It just seems to me that it could end up very much in tears”, he concluded.
However, despite the crisis in the world of cryptocurrencies and such statements from financial gurus, many companies continue to buy Bitcoin and Ethereum ruthlessly. After all, it is possible that the old system, which Seth Klarman adheres to, is falling apart, and the future is just behind cryptocurrencies. In that case, the right choice is to listen to those who are for progress.
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