The CEO of consultancy firm Agecroft Partners, Don Steinbrugge, recently praised Bitcoin as “fantastic technology” while discussing nontraditional investments on CNBC.
He believes that it’s one of the best nontraditional investments to have in a portfolio.
“It’s been an amazing run, it’s fantastic technology; some people are using it as a way to hedge against inflation,” he said.
Traditionally, gold is used as a hedge against inflation. The price of gold also has risen as stocks have become more volatile.
Steinbrugge was referencing this in regards to the latest inflections of the U.S.-China trade war. Some commentators have suggested that Bitcoin’s recent rise to over $12,000 is related to the conflict.
The CEO feels that stimulus packages have run their course and no longer have the economic healing effect that they once had.
Instead, Steinbrugge sees Bitcoin as a better hedge against economic uncertainty.
He cautioned against investors putting their money into equities in the current volatile climate.
Regarding outright Bitcoin investment, Steinbrugge stated: “Right now it’s very expensive; it’s very hard to value, but Bitcoin is going to be here for a long time and long term I think it will be part of a lot of hedge funds’ portfolios.”
Hedge funds buy in
There has already been a few instances of hedge funds steadily adding Bitcoin and other currencies into their portfolios. For the funds that weathered through the 2018 bear market, 2019 has been a year that their prices have returned to form.
Recently in July of 2019, veteran investor Bill Miller’s hedge fund saw a growth of 46%. Reportedly a good deal of this came from investing in Bitcoin.
Bloomberg reported on July 26 that Miller achieved such stellar growth through a combination of investing in Bitcoin and a number of high-performing stocks.
Miller’s fund holds Amazon, security firm ADT and Avon products, among other stocks.
If Steinbrugge’s prediction rings true, we could see to see use of cryptocurrencies in hedge fund portfolios.
Small-cap winners galoreThe big stock market winners share one common attribute: Near the beginning of the ascent of their shares, the companies offer revolutionary products or services, are market leaders in their respective industries, or both. Some big stock market winners that possessed the attributes outlined above are Netflix (NFLX), which we recommended to investors in October 2002; Intuitive Surgical (ISRG), which we bought and recommended in July 2004; Baidu.com (BIDU), which we bought and recommended in August 2006; and MercadoLibre (MELI), which we recommended to investors in October 2010. Get up-to-date small-cap stock picks from David Frazier, editor of Small-Cap Profit Confidential.
Smarter cryptocurrency investmentsThe stock market crash of 2008 was the catalyst for his journey into alternatives. And interestingly, it was the impetus behind the creation of Bitcoin and the blockchain technology behind it. Keene Little wasn’t ready to risk his money yet but he was very curious, so he began charting Bitcoin’s technical patterns. What finally convinced him to dip a toe into digital currencies was seeing that they followed familiar price patterns that could be analyzed and successfully acted on. Now he shares those insights with subscribers to the Crypto Wealth Protocol.