According to Horizon Kinetics, a contrarian investing company, cryptocurrency and land are the greatest assets to hedge against currency depreciation. In the face of increasing global economic difficulties, contrarian investment company Horizon Kinetics is urging investors to seek exposure to crypto assets.
In an interview with the Financial Times, Horizon co-founder Peter Doyle predicted that the global economy would reach a tipping point as a result of the coronavirus epidemic and rising debt:
“After the epidemic, there is no going back, and there is a debt issue worldwide, which implies default or currency debasement.”
Horizon’s Paradigm fund invested 1% of its portfolio in Grayscale’s Bitcoin Trust in 2016, and the investment is currently worth 10% of the fund’s total assets.
“People should have exposure to the asset class,” Doyle said, pointing to Bitcoin’s limited supply amid worries over currency depreciation.
“The greatest long-term investors have concentrated portfolios and low holding turnover because they allow the businesses they own to develop and compound profits,” he said.
Morningstar reports that Horizon Kinetics currently has three of the top ten mutual funds performing in 2021.
Long-term investments in real estate developers and land owners throughout North America, such as Texas Pacific Land, Dream Unlimited, and Brookfield Asset Management, have benefited the firm’s top-performing funds in addition to its crypto allocation.
Guardtime, a European blockchain company, said earlier this month that the coronavirus epidemic has prompted countries to speed up their research into central bank digital currency (CBDC).
The firm’s study concluded that “not only has Coronavirus expedited the digitalization of society, it has also further changed how we utilize money,” and that a CBDC might be established within three years.