Barry Sternlicht knows a thing or two about appropriate investment risks. The billionaire investor is the Co-Founder and Chairman of Starwood Capital Group, overseeing the management of more than $100 billion in assets.
Even though Bitcoin has suffered a one-fifth loss in value over the past month, Sternlicht remains confident: Bitcoin is the only “smart hedge” on the market.
Expanding on his faith in Bitcoin at Bloomberg’s recent Future of Global Financial Centers event, Sternlicht dismissed several potential doomsday scenarios for the increasingly popular cryptocurrency. While some critics have pointed out that Bitcoin has no inherent value in itself, Sternlicht argues that that attribute is shared by gold and other precious metals. More importantly, Sternlicht says, Bitcoin could become incredibly important in a situation in which the international community puts forth policies to devalue the U.S. dollar.
In fact, the billionaire is so sure about the importance of Bitcoin despite its current dip in value that at least 2% of his own net worth is held in crypto. If his prediction that the leading cryptocurrency is eventually going to exceed $1 million in value, “smart hedge” may prove to be a dramatic understatement.