Billionaire Barry Sternlicht, chairman of Starwood Capital Group, has shared his thoughts on how bitcoin could become worth a million dollars per coin. In a world where the government just keeps printing money, he sees cryptocurrency as a “smart” hedge.
Billionaire Barry Sternlicht believes Bitcoin has the potential to reach $1 million per coin.
Billionaire Barry Sternlicht, chairman of Starwood Capital Group, spoke about the future of cryptocurrencies, particularly bitcoin, at a Bloomberg event in Miami on Friday.
Sternlicht is the CEO of Starwood Capital Group, a private equity firm focused on real estate investments. The firm manages approximately $100 billion in real estate, debt, and energy assets. His current net worth is $4.2 billion, according to Forbes’ list of billionaires.
Noting that he has described his bitcoin holdings as a “great hedge,” the billionaire was asked, “Is that how we should all be thinking?” “Yes,” Sternlicht said emphatically.
He stated that we live “in a world where the government just prints money, and prints money, and prints money, and prints money, and prints money, and doesn’t seem to have any consequences.” Noting that “Sometimes, that will come to an end,” the billionaire emphasized:
The only thing that they can’t make more of is bitcoin.
He went on to say that bitcoin has “never been hacked,” but that “it has no real value other than the fact that there are 21 million coins” that are “infinitely divisible.”
In comparison, he stated that gold “really does not have a lot of value,” adding, “You can have your gold jewelry, but it could be silver, titanium, or platinum.”
“You could see the world saying to the US, especially with our political isolationism, that China is going to try to knock us off the dollar standard, and they are going to have a lot of countries aligned with them,” Sternlicht said.
“They are going to try really hard,” said the Starwood Capital executive. It’s self-evident. They intend to make a concerted effort to break the dollar standard. If that happens and the dollar falls in value, you’ll need something that can hold its value.”
While admitting that bitcoin “will fall with the stock market,” he emphasized that “it will reverse,” elaborating:
It would go to $1 million a coin. It could do that because everyone, it’s not U.S. investors, the whole world will look at one thing that they can’t make more of and that would be bitcoin.
“There’s no function other than a store of value,” he cautioned. “Having a little investment in bitcoin, I think, might be a smart little hedge in your life because your paper will be worthless, unfortunately.”
The billionaire then revealed that cryptocurrencies account for about 2% to 3% of his net worth. In terms of cryptocurrency investment, he stated, “If it goes to zero, it won’t hurt me, and it won’t hurt you.” He did, however, emphasize:
But if it goes to $1 million a coin, you are going to look at the TV and get very upset.
Bitcoin is being used by an increasing number of billionaires to hedge against inflation.
Paul Tudor Jones, a well-known hedge fund manager, stated in October that he preferred bitcoin to gold. Orlando Bravo, the billionaire who co-founded private equity firm Thoma Bravo, stated in September that he believes bitcoin will rise “significantly.”
Mexican billionaire Ricardo Salinas Pliego said last week that the United States “is looking more and more like any other irresponsible third-world country.” “Wow…look at the scale of fake money creation,” Salinas commented on a weekly chart of the total value of the Federal Reserve’s assets (less eliminations from consolidation). Purchase bitcoin right now.”