Bitcoin’s ‘Very Attractive’ as a Safe Haven, Many Wealthy Investors & Traders will Turn to it after Labor Day: Wall Street Veteran
Ex-Prudential CEO George Ball says Bitcoin could soon become sought after as a safe-haven asset, and many wealthy investors or traders will consider buying it after Labor Day.
In an interview with Reuters, the current chief executive officer of Sanders Morris Harris said he “always” has been an opponent of bitcoin, cryptocurrency, and the technology underpinning them blockchain.
But with all the monetary stimulus from the government, these digital assets make sense because “the government can't stimulate the markets forever,” and the “liquidity flood will end,” sooner or later.
For now, thanks to government policies, stocks have been flying with S&P 500 just inches away from its all-time high.
“You've got a wash of liquidity, which is really what's driving and holding the stock market up right now, the risk of an election,” said Ball.
He also clarified that Joe Biden’s win wouldn’t be a “catastrophe for the stock market,” as his tax policies are “benign.”
Precious metals have also been surging with gold hitting a new high above $2,000.
But when the money printer’s ink gets run out, which could happen around the fourth quarter, both traders and investors are going to need to “realign their portfolios substantially” in favor of the cryptocurrency.
And “if they print money, that debases the currency and probably even things like TIPS — Treasury inflation-protected securities — can be corrupted. So the very wealthy investor or the trader probably turns to Bitcoin or something like it as a staple,” said Ball.
So, it’s a win-win for bitcoin as in both cases, investors will be turning to Bitcoin and the time for that is now — “before the fuse is lit or when the fuse is lit and hasn't expanded – exploded yet, which is probably now.”
He also points out how the largest digital asset isn’t about seeking a tax refuge, but it is something the government can't undermine, and unlike fiat currency, bitcoin “won’t become worthless” either.
“There's no yield today. And so Bitcoin or another cryptocurrency becomes very attractive either long term, I want to make a safe haven for my money or a short-term speculative bet… I think it's where many people will turn after Labor Day.”
For Robinhood traders as well, when they don’t want to trade stocks down the line, as they have been doing throughout 2020, Ball believes they will be putting their money into the cryptocurrency market.
On Bitcoin skeptic Jamie Dimon, who once called it a “fraud,” talking about the digital asset, Ball thinks “Jamie's at least a partial convert. I'm not sure that he's a total convert.”