The CEO of Abra, Bill Barhydt, announced on Twitter that he is considering doubling the allocation of Bitcoin (BTC) in his personal portfolio. This comes after several weeks in which Bitcoin has been traded between $10,000 and $11,000.
Abra CEO Wants to Increase His Bitcoin Exposure
Large investors and cryptocurrency figures are thinking about increasing their exposure to Bitcoin. This is the case of Mr. Barhydt that announced on Twitter he is planning to increase by 100% his allocation of Bitcoin in his personal portfolio.
The main reason behind this decision is due to the acceleration of currency inflation. He stated that given the acceleration of currency inflation and price inflation to follow, it seemed better to increase his Bitcoin allocation to 25%.
On the matter, he wrote on Twitter:
“I’m considering doubling the allocation of #Bitcoin in my personal portfolio to 25%. Is this a good idea or is this allocation too high? Given the acceleration of currency inflation and the likely price inflation to follow this seems like a better weighting than my current 12%.”
It is worth taking into consideration that hedge fund experts are telling that stock market returns are likely “to be muted” in the next five years. Of course, Bill Barhydt’s decision has been celebrated by a large number of users that support Bitcoin and the cryptocurrency market.
Nonetheless, some users were saying that his exposure to Bitcoin remains too low and that he should increase it even more. Peter McCormack and Dan Held are two of the crypto figures that answered him on Twitter.
Other users were commenting that this crypto allocation could be risky but with a high return in the future, if things go well for Bitcoin. During the current pandemic, a large number of countries have been increasing their currency printing to “reduce” the negative effect of the COVID-19 on the economy.
Due to this reason, the expectations for inflation in several countries has grown very fastly. This has pushed individuals to make riskier investments trying to get higher returns and win against inflation in the coming years.
However, this is not an easy task to do and it may be very risky for many individuals that spend a large part of their savings trying to get a few percentage points more than the current inflation rates. EM countries have been affected even harder and Bitcoin could help investors protect their money.