While criticizing governments printing more currency notes in an effort to mitigate the financial crisis, billionaire Barry Sternlicht said that digital currencies are a “smart hedge” and claimed that Bitcoin’s economy would be into trillions of dollars because the asset itself will worth more than a million-dollar in the future.
Starwood Capital Group’s head, Barry Sternlicht, is fully aware that the crypto economy is down since 4th December 2021. But still, there is no alteration in his viewpoint with regard to digital currencies. While talking to Bloomberg he sketched the future of cryptocurrencies, including Bitcoin. In his “future of cryptocurrencies”, he sees Bitcoin becoming an asset worth more than a million-dollar. Since he himself is a Bitcoin investor he suggested that he is availing full benefits of Bitcoin as a hedge against inflation and economic catastrophe.
When the interviewer questioned Sternlicht whether he would recommend his thought to anyone. In response, he said of course people must invest in cryptocurrencies, if not in Bitcoin.
While elaborating his viewpoint regarding digital currencies, he said that he is against excessive printing of money for mitigating the impacts of the crisis. He argued that printing money excessively by the government would literally mean weakening the financial and monetary system/policies further. However, it will not end or even mitigate the crisis per se. He then talked about gold and commented that in comparison with Bitcoin, gold hardly has any value left.
He was further asked to give a comment on the possibility of Bitcoin’s price reduction because of the stocks. He too admitted that such a possibility is very much possible in the near future. But as has been seen in the past, the reduction will be reversed over time. Eventually, Bitcoin will be sold against millions of dollars, argued Sternlicht. He insisted that Bitcoin is something that is trusted by a global audience. There wouldn’t be investors from the US alone investing in Bitcoin. In fact, the whole world would be putting their monies into Bitcoin because, at some point in time, Bitcoin will be scarce.
What Sternlicht meant was that Bitcoin has a limited supply that spreads over 21 million BTCs. Once the supply reaches its maximum limit, there won’t be any further Bitcoins issued in the market. Bitcoin would then become a “rare” asset. Therefore, if anyone would want to acquire a BTC, then the purchase price would be at the discretion of the seller.
Sternlicht believes that buying Bitcoin isn’t a bad option at all. He referred to a future prediction that suggested that Bitcoin’s supply will be reaching its end in 2140. He then revealed that at least 2 to 3 percent of his net worth has been invested in cryptocurrencies. He even suggested that if somehow crypto-economy becomes “zero” even then it wouldn’t bother him at all.