cryptovibes.com
The effects of COVID-19, as well as the improper way the world has been trying to handle it, are bound to be felt for years to come. Economic challenges are emerging everywhere around the globe, and many are worrying about how to protect themselves from the upcoming difficulties.
According to Horizon Kinetics, a contrarian investment firm, the best way to do this would be to seek exposure to rather specific types of assets — cryptocurrency and land.
Horizon’s co-founder warms of upcoming economic difficulties
Horizon’s co-founder, Peter Doyle, recently spoke for Financial Times, commenting on the economic difficulties that are coming. Doyle’s warning says that growing debt and coronavirus pandemic will bring forth an inflection point for the economy of the entire world. He said that there is no turning back after the pandemic. Meanwhile, there is a global debt problem, and he fears that these issues combined will result in currency debasement.
However, he believes that there is still time for people to prepare by investing in Bitcoin. The coin’s capped supply will allow it to become a safe haven amid currency debasement. Horizon has had cryptocurrencies in mind for a while now, and its Paradigm fund even made a 1% allocation into Graysale’s Bitcoin Trust all the way back in 2016. These days, that percentage is now much higher, sitting at 10%.
Doyle added that the best long-term investors seek to have concentrated portfolios, and low turnover in holdings. They are allowing companies they own to grow, all the while compounding returns.
In Doyle’s favor, Horizon clearly knows what it is doing, given that it boasts three of the top-10 performing mutual funds in 2021. But, the firm is not only focusing on crypto, but also in long-term investments in landowners and real estate developers. It is investing in companies across North America.
However, there is no doubt that the interest in cryptocurrencies and their potential is growing. The same was noticed by the blockchain firm Guardtime, which found earlier this month that the pandemic has led the governments around the globe to speed up their CBDC research and development, predicting that CBDCs could be launched within three years.