According to Horizon Kinetics, a Contrarian investment organisation, cryptocurrency and land are the greatest assets to hold against currency depreciation.
When it comes to investing in the cryptocurrency market, the contrarian investment firm Horizon Kinetics advises investors to seek exposure to the asset class as global economic issues worsen.
The Financial Times quoted Horizon’s co-founder Peter Doyle as saying that the coronavirus pandemic and mounting debt will herald in a period of transition for the world economy, predicting:
“There is no going back after the pandemic, and the world is facing a debt crisis, which will result in either a default or a depreciation of the currency.”
Horizon’s Paradigm fund took a one-percent investment in Grayscale’s Bitcoin Trust in 2016, and the stake has grown to account for 10 percent of the fund’s total assets.
Despite concerns about currency debasement, Doyle believes that “people should have exposure to the asset class.” He emphasised Bitcoin’s limited quantity in order to underscore the asset class’s importance.
Because they allow the companies they own to expand and compound their gains, the best long-term investors tend to have concentrated portfolios and limited turnover in holdings, according to the author.
According to Morningstar, Horizon Kinetics now has three of the top ten performing mutual funds in the United States for the first half of 2021.
The firm’s top-performing funds have profited from long-term investments in landowners and real estate developers across North America, including Texas Pacific Land, Dream Unlimited, and Brookfield Asset Management, in addition to their crypto allocations.
European blockchain firm Guardtime reported data earlier this month indicating the coronavirus pandemic has prompted countries to hasten study into central bank digital currency as a result of the outbreak (CBDC).
The firm’s research revealed that “Not only has Coronavirus accelerated the digitization of society, it has also further transformed how we use money.” leading it to predict that a CBDC may be implemented within three years of its discovery.