CEO and Chairman of Point 72 Asset Management Steve Cohen announced that he has completely adopted cryptocurrency. Cohen is now the latest in a long line of billionaires who have banked entirely on crypto and Bitcoin.
Cohen Talks About Fully Converting to Bitcoin
In an interview with Jawed Mian, Founder of Stray Reflections, billionaire CEO Steve Cohen has talked about his decision to convert to cryptocurrencies, namely Bitcoin. When asked about the latest market crash Bitcoin has faced, Cohen commented,
“I don’t care about the bitcoin price. I care more about blockchain technology and how disruptive it could be. The way those markets are developing could be a real interesting adjacency to what we do.”
His announcement comes close on the heels of the report back in May that his company Point72 was planning to make a significant entrance into the crypto market and were onboarding people accordingly. However, Cohen would not be the first billionaire to hitch his wagon to the rising crypto wave.
Billionaires Continue To Bank On Bitcoin Despite Market Crash
Despite the market crash last month, Bitcoin and cryptocurrencies, in general, have continued to see worldwide acceptance and adoption. In fact, many billionaires like Cohen are considering the market lull as an entry point to join the Bitcoin game.
Hedgefund tycoon Ray Dalio went on record to say that not only did he own Bitcoin, but he would actually prefer to own BTC over bonds. According to Dalio, cryptocurrency would act as the best store of value in a volatile investment environment.
Bitcoin Better Than Gold For Billionaire Investors
Billionaire investor Stanley Druckenmiller had previously spoken about his Bitcoin investment journey. He equates it to holding gold as a store of value instead of fiat currencies. More recently, he backed a $70 million funding for Bitcoin asset management company Bitwise, along with other notable hedgefund heavyweights of the country.
Comparing their performances over the last 12 months, MicroStrategy CEO Michael Saylor commented,
“Investors are seeing that bitcoin’s up 330%, and gold is up 7% in that period, so bitcoin is outperforming gold as an inflation hedge by a factor of 50.”
Another billionaire hedge fund manager who has banked heavily on crypto investments is Paul Tudor Jones, who recommended investing 5% of the portfolio in Bitcoin.
Elon Musk And Bitcoin: A Love-Hate Relationship
Billionaire entrepreneur and business magnate Elon Musk has been a powerful influence in the cryptocurrency market, especially for Bitcoin. In February, his company Tesla bought $1.5 billion worth of Bitcoin, which skyrocketed its market value. Musk then sold 10% of Tesla’s Bitcoins to “test liquidity” of the crypto. Even though last month’s Bitcoin crash was catalyzed by Musk’s tweet that criticized Bitcoin’s high energy costs and environmental impacts, it’s apparent that Musk is not keen to hop off the Bitcoin wagon. In a more recent tweet, he stated,
“When there’s confirmation of reasonable (~50%) clean energy usage by miners with positive future trend, Tesla will resume allowing Bitcoin transactions.”
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
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