In the face of increasingly severe global economic challenges, reverse investment company Horizon Kinetics recommends that investors seek exposure to crypto assets.
against Financial TimesHorizon’s co-founder Peter Doyle warned that the coronavirus pandemic and growing debt will usher in a turning point in the world economy. He predicted:
“There is no turning back after the pandemic. There are debt problems all over the world, which means either a default or a currency devaluation.”
Horizon’s Paradigm Fund allocated 1% of the funds to Grayscale’s Bitcoin Trust in 2016, and the investment currently accounts for 10% of the fund’s portfolio.
“People should be exposed to this asset class,” Doyle asserted, and he emphasized the upper limit of Bitcoin’s supply amid concerns about currency depreciation.
“The best long-term investors tend to have a concentrated investment portfolio and a low shareholding turnover rate because they allow the companies they own to grow and obtain compound returns,” he added.
According to Morningstar data, Horizon Kinetics currently owns three of the top 10 mutual funds in 2021.
In addition to cryptocurrency allocation, the company’s best performing funds also benefited from long-term investments in North American landowners and real estate developers, including Texas Pacific Land, Dream Unlimited and Brookfield Asset Management.
Earlier this month, European blockchain company Guardtime announced the findings that the coronavirus pandemic prompted governments to take action Accelerate the exploration of central bank digital currency (CBDC).
The company’s research predicts that CBDC may be launched within three years and found that “coronavirus has not only accelerated the digitization of society, it has also further changed the way we use money.”