Billionaire Barry Sternlicht Buys Bitcoin And Ethereum, Calls Gold “Worthless”

Billionaire Barry Sternlicht Buys Bitcoin And Ethereum, Calls Gold “Worthless”

Another legendary investor has revealed a position in Bitcoin and Ethereum as the cryptocurrencies approach their all-time highs. In an interview with CNBC billionaire Barry Sternlicht claimed that he has purchase BTC and ETH joining the ranks of Elon Musk, Michael Saylor, and Paul Tudor Jones.

Sternlicht has an approximate net worth valued at $4 billion. He is one of the founders of Starwood Capital Group. The investment fund has an estimated $60 billion in assets under management (AUM).

Similar to Jones and Saylor, Sternlicht is concerned about central banks and their monetary policies which could be creating inflation for their currencies. Thus, the legendary investor decided to diversify his portfolio into Bitcoin and Ethereum as a hedge against this phenomenon.

In addition, Sternlicht took on the opportunity to address the comments made by the CEO of JP Morgan Chase Jamie Dimon on Bitcoin. A few days ago, the executive called BTC “worthless” following a long list of dismissing comments made by Dimon across the years.

In response, Sternlicht claimed that gold, one of the most common use assets a store of value, is “worthless”. The legendary investor said:

What Jamie Dimon talked about, I mean, gold is kinda worthless too and silver. They have some industrial uses, but they are minor. It’s a store of value. The reason I own Bitcoin it’s because the U.S. government and every government in the Western hemisphere is printing money now until the end of time (…).

BTC’s characteristics, its capacity to move value around the world, and its finite supply, are other reasons that convinced Sternlicht to jump into the crypto market. In that sense, the co-founder of Starwood Capital added:

You can move into something (Bitcoin) that the world has accepted as a substitute for gold, and since it’s an 18 million flow or something like that out of 21 (million BTC). I think Bitcoin is the biggest, it’s a dumb coin, it has no real purpose, other than a store of value (…).

"Gold is kind of worthless," says Barry Sternlicht. "The reason I own #bitcoin is because the U.S. government and every government in western hemisphere is printing money now to the end of time and this is a finite amount of something and it can be traded globally."— Squawk Box (@SquawkCNBC) October 13, 2021

Bitcoin And Ethereum Still In Its Early Phase

On the contrary, Sternlicht believes Ethereum has the capacity to be programmable. Ultimately, the legendary investors claimed to be interested in blockchain technology as a whole.

Bitcoin and Ethereum, as Sternlicht understand them, could lead to a technology revolution as the internet once did. He added:

I became very interested in the blockchain technology, in the digital ledger. This is going to change everything, and we are probably in inning one.

Sternlicht is far from the only institutional investor that has caught with the potential in cryptocurrencies. This has taken an important tolled on gold-based investment products, as pointed out by Bloomberg Intelligence Senior Commodity Strategist Mike McGlone.

The process of #Bitcoin replacing #gold and rapid spread of #cryptodollars are primary reasons diversification with crypto assets is gaining status as simply prudent. Organic adoption of digital dollars is a predominant trend, adding tailwinds to the buck and headwinds to gold.— Mike McGlone (@mikemcglone11) September 22, 2021

At the time of writing, BTC trades at $57,337 with a 3.7% profit in the weekly chart.