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Billionaire Investor Tim Draper: Why Millennials Should Consider Investing in Bitcoin

In an interview with FOXBusiness, the well-known US venture investor, Tim Draper has given invaluable advice for millennials. He suggested that if millennials really want to have a wealthy and successful retirement life, then they need to invest in Bitcoin.

Draper said, “If you are a millennial, then Bitcoin is the best place to invest your money.” He believes that Bitcoin is the key for young people who want to ensure that they have sufficient money for retirement.

Why Bitcoin is the right place for millennials to save for their future

According to the billionaire venture capitalist, millennials are standing at a point in history where they have the entire future of the world financial systems ahead of them. But the most significant challenge is that millennials have inherited the banking systems from the older generation, which no longer works. Draper criticized the banking systems of putting young people in thousands of dollars of debt.

He reminded millennials that what may have worked for their fathers or their grandfathers will not work for them. He mentioned that putting money away, penny by penny to save for retirement, is no longer working for young people. Millennials are born into a world already buried in huge debts, he said.

Today’s salaries don’t allow millennials to be able to pay off the debt; Draper believes that young people have become renters instead of buyers because they don’t have any choice. Draper added, “Begin building your empire in the new model, which does not require that you have to pay 2.5%-4% every time you swipe your credit card to some bank or another. And does not require all the heavy regulations we have, which are tied to the dollar. If you really want it to work for you, then go to Bitcoin or cryptocurrency.”

Is Bitcoin a safe investment choice?

However, not everyone agrees with Draper that young people should invest in Bitcoin. Since the launch of Bitcoin in 2009, the entire crypto industry has been adversely affected by constant skepticism. In late 2018, Nouriel Roubini, American economist, talked about cryptocurrencies referring to them as “the mother of all scams,” therefore leaving many people wondering if there’s any legitimacy behind Bitcoin.

Furthermore, cryptocurrencies are also known to be extremely volatile. Draper concluded the interview by showing millennials how the future is going to look like. He stated that the future is not going to be tribal anymore nor tied to a geographical border, but is going to be open and global. Draper recognized Bitcoin as the only currency that is global, decentralized, and borderless. He is convinced that the easiest way to participate in the global economic system is to be able to move freely and move goods and capital freely throughout the globe.

Image via Blockchain Echo

Warren Buffett: Cryptocurrencies Do Not Have Any Value And I Will Never Own Any

Business magnate, CEO and Chairman of Berkshire Hathaway, Warren Buffett on Monday, Feb. 24, confirmed his resentment for cryptocurrency. Buffett known for his long term continuous lack of support to cryptocurrency stated, “Cryptocurrencies basically have no value and they don’t produce anything,” he told CNBC’s Becky Quick in a Squawk Box interview. “In terms of value: Zero.”

In his annual letter to shareholders where discussions are made about the markets, Buffett while being hosted by CNBC openly declared He presently owns no cryptocurrency and will never own one in the future.

Buffett who is well known as a long-time critic of the world’s largest digital coin (Bitcoin). He once called bitcoin “probably rat poisoned square,” A “mirage,” “not a currency”,” and, “tulips” among many others, according to CNBC’s Archive of Warren Buffett.

Buffett’s resentments about bitcoin seem to be shared by Berkshire Vice Chairman Charlie Munger who called bitcoin a “turd,” and went further to say that trading cryptocurrency is “just dementia.”

Although there have been several attempts including last year’s move by Justin Sun, Founder of cryptocurrency assets TRON and CEO of file-sharing company BitTorrent attempts to change Warren Buffettt’s stand on cryptocurrency when Sun proposed a $4.6 million in a charity auction to have a meal with Buffet in other to soften his skepticism about bitcoin.

Buffett in a quote about the meeting over dinner with Sun and some other crypto believers stated, “When Justin and four friends came, they behaved perfectly and we had a very friendly three and a half hour dinner and the whole thing was a very friendly exchange of ideas,” Buffett said. He added that neither he nor Sun changed their stance on the coin.

With all of these, it is clear that it would take a form of magic for Buffett’s opinion about bitcoin and cryptocurrency, in general, to be changed.

Image via CNBC

Billionaire Paul Tudor Jones Looks to Buy Bitcoin as A Portfolio Hedge Against Inflation – Here's Why

According to a Bloomberg report, billionaire hedge fund manager Paul Tudor Jones is buying Bitcoin to hedge against inflation as central banks across the world print money to relieve economies affected by coronavirus pandemic.

Jones is one of Wall Street’s most seasoned and successful hedge fund managers. He is the CEO and founder of Tudor Investment Corp, which is a hedge fund company that managed $8.4 billion as of March 30, based on data from the SEC (Securities and Exchange Commission).

Looking to insulate assets from the market downturn

In a market outlook note, Jones told his clients that he thinks Bitcoin will serve as a potential hedge against a rise in inflation he believes is coming because of central banks sharply expanding their balance sheets and printing money amid the COVID-19 epidemic.

According to the report, Jones compared Bitcoin to gold by saying that the leading cryptocurrency reminds him of the role that gold played in the 1970s.

In the client note, Jones said, “The best profit-maximizing strategy is to own the fastest horse. If I am forced to forecast, my bet is it will be Bitcoin.”

The hedge fund manager commented that one of his funds, Tudor BVI, holds a low single-digit percentage of its assets in Bitcoin futures to assist in protecting against an increase in inflation. Bitcoin (BTC) traded up more by 6.5% to $9,911 on Thursday.

Interest in Bitcoin has increased amid trillion-dollar rescue packages from central banks around the globe as nations seek to improve economies, which are experiencing tremendous GDP contraction because of the coronavirus outbreak.

Jones has achieved legendary status on Wall Street after making the correct prediction of the 1987 economic crash and correctly predicted shorting Japanese equities several years later before Japan’s economy crashed.

Jones told CNBC in March that he believed the stock market could be back higher by June if COVID-19 cases started to peak. He commented that at the time when he expected stocks to endure a choppy April, saying that these equities would eventually climb again.

His current announcement came when central banks, including the US Federal Reserve, begin working on significant monetary policy initiatives aimed to help businesses keep lights during the coronavirus crisis. The Fed already has created two emergency interest cuts, which lowered borrowing costs to near zero like they were during the 2008 financial crisis. But some investors are worried by the Fed’s move to print money and inject it into the US economy as this would zoom higher prices in the future.

Bitcoin price and the global financial crisis: Everybody’s looking at the wrong markets

While everyone obsesses over unemployment, inflation, bailouts, and stock markets, the biggest global financial risk comes from debt markets. Such opaque and complicated markets hold trillions of dollars worth of household, government, and corporate debt, including all the derivative financial products based on such debt. Since September last year, the US federal reserve has supported banks with overnight loans to cover a shortfall in cash. A collapse in the debt market is likely to ruin the global financial system.

Currently, people have so many problems in such markets, and it is difficult to figure out where to begin solving the problems. No amount of money printing could fix these problems. While the financial system of the world teeters on the edge of collapse and deflationary depression, the crypto sphere is hyping Bitcoin as a way to capitalize on inflation from all the money that governments are printing in response. Many people increasingly see Bitcoin as a safe haven in the financial crisis. People appear to flee the sinking fiat currency in favor of the digital currency with no central control.

Image via WSJ

Billionaire Chris Kirubi Warns Followers of Bitcoin Scammers Impersonating the Kenyan Tycoon

Kenya’s billionaire businessman Chris Kirubi has once again tweeted a warning to inform his 1.4 million followers about cryptocurrency websites that have been using his name and photos to solicit investments in a scheme called “Bitcoin Profit.” The tycoon clarifies that he is not associated with such organizations, and the information provided is deceptive and misleading.

Industrialist and businessman Dr. Chris Kirubi is on the list of Africa’s wealthiest people by Forbes Magazine, with his total net worth valued at US$400 million (Ksh40 billion). He is known for sharing wisdom concerning business and investment tips through his credible websites and official verified social media handles. The scammers have been re-quoting well-known sayings and pieces of Kirubi’s typical advice on business and investment to appear authentic to unsuspecting Kenyans.

Renewed Warnings

The tycoon already sounded the alarm over a similar scheme in March.

The automatic trading software called “Bitcoin Profit” has been citing Kirubi as one of their investors to catch the attention of unsuspecting Kenyans.

The rogue website falsifies information, portraying Dr. Kirubi to have spoken these words on the fraudulent money scheme:

“I thought it wasn’t true when my older brother told me but after seeing with my own eyes, I am glad I tried it.”

The Ponzi scheme website goes further to fake detailed information regarding how Kirubi had ventured into this latest investment and was reaping big.

Kirubi, therefore, urges members of the public to exercise extreme caution when making any investments.

This is not the first warning alert. As early as 2015, Kenyans were warned against being duped by crypto fraudsters. During the same year, the Central Bank of Kenya issued a stern warning to the public against digital currencies. In 2018, the central bank blacklisted cryptocurrencies and warned banks against dealing with them, citing security concerns.

During early last year, a lesser-known Brazilian crypto platform called Velox 10 Global defrauded thousands of millions of Kenya shillings belonging to local Bitcoin investors. Last year, the Blockchain Association of Kenya stated that the total number of crypto transactions, particularly Bitcoin, in Kenya was approximated to be worth more than US$1.5 million.

Crypto Scammers Appeal to People’s Greed

Millions of crypto investors have been scammed out of huge amounts of money. In 2018, losses from crypto-related crimes amounted to US$1.7 billion. The fraudsters use new-technology and old-fashioned tactics to swindle their marks in schemes based on virtual currencies exchanged through online databases known as blockchain.

Many crypto scammers rely on the tried-and-true Ponzi schemes, which use the income from new clients to pay out returns to earlier investors. Others use highly sophisticated and automated processes, including automated software, which interact with social media channel systems among people interested in virtual currencies. Even in cases where cryptocurrency plans are legitimate, scammers can still manipulate their prices in the marketplace.

Elon Musk Confirms Russian Bitcoin Ransomware Attack Targeting Tesla, FBI to the Rescue

Elon Musk has confirmed that Tesla was recently targeted in a ransomware attack set to extort $1 million in Bitcoin from the car manufacturing giant.

Ransomware Attack on Tesla

A Russian national reached out to a Tesla employee from the manufacturing factory in Nevada and enticed him to install ransomware malware onto Tesla’s computer network. The Russian scam artist offered the employee $1 million and an upfront payment of 1 Bitcoin (BTC) in exchange for uploading the software.

Rather than accepting the bribe, the employee called the FBI. Upon investigation, the US Federal Bureau of Investigation arrested a 27-year-old Russian, Egor Igorevich Kriuchkov, who was at the basis of the ransomware attempt. Kriuchkov was apprehended in Los Angeles on August 22 and is currently facing up to 5 years in prison for the ransomware scheme, if found guilty.

As shared by Forbes, Bitcoin is highly favored as a payment method by cybercriminals, with the digital asset’s rising value on the market and its increasing popularity as a hedge among investors. Over the past 6 years, ransomware attacks by cyber schemers have generated over $140 million worth of Bitcoin, according to the FBI.

Speaking about the Bitcoin extortion attempt targeting his company, CEO Elon Musk said that it was a serious attack, after having suffered from a previous Bitcoin Twitter hack that overtook his social media platform as well as that of other tech moguls and big-name figures. The Bitcoin ransomware attempt comes at a time when Tesla stock is surging on the market, boasting of a market capitalization of approximately $465 billion after an announced 5-for-1 stock split that quadrupled Elon Musk’s wealth.

Overtaking Facebook CEO Mark Zuckerberg, the SpaceX founder now figures among the top 3 wealthiest people in the world, according to the Bloomberg Billionaires Index.

Gold or Bitcoin as Hedge?

Elon Musk has also been working on a plan to mine gold from asteroids and is to launch a mission with his company SpaceX, as disclosed by NASA.

In parallel to this, Bitcoin billionaire Tyler Winklevoss has continued educating investors on the benefits of investing in BTC rather than gold or USD, due to the digital asset’s protective nature against inflation.

Bitcoin, often dubbed “digital gold” by avid investors, has a limited maximum supply of 21 million, and according to Winklevoss’ predictions, Bitcoin’s value will continue escalating, with the US dollar plummeting and gold’s actual global supply being unknown.

With the cryptocurrency having a maximum cap of 21 million coins in the world, Winklevoss has therefore touted BTC as the best hedge against inflation.

Billionaire Investor Mike Novogratz Refuses to Lose Faith in Bitcoin

On Monday, 14th September 2020, during an interview on CNBC’s “Squawk Box,” Mike Novogratz, the CEO and founder of crypto-focused merchant bank Galaxy Digital asset management company talked about why he still loves cryptocurrencies as a hard asset despite a pause in the latest crypto market rally.

Novogratz has long been an advocate for Bitcoin and sees it as digital gold. During the interview, he took the opportunity to profess his love for Bitcoin. He said: “I don’t see our deficits miraculously collapsing. I still have a big Gold position. I still love cryptocurrency as hard assets. I think being short the dollar still makes a whole lot of sense.”

The Biggest Threat Facing Bitcoin

Last Friday, the US Department of The Treasury announced that the country’s deficit surpassed $3 trillion for the first time in history. It is projected to hit $3.3 trillion by the end of this budget year.

The U.S federal deficit hit $3 trillion due to aggressive fiscal and monetary stimulus. The U.S federal reserve resorted to printing more money in order to deal with a huge fiscal deficit. Novogratz once described “Money growing on trees” as the biggest threat to the world’s largest cryptocurrency. In other words, the biggest threat that any government could pose to Bitcoin is to decide to launch a budget surplus, therefore undermining one of the main value propositions of the world’s largest cryptocurrency.

When the government began printing money to facilitate a trillion-dollar stimulus package, investors such as Paul Tudor Jones begin turning to the scarce cryptocurrency to hedge against inflation.

While Bitcoin’s rally in August was partially attributed to the weakening U.S Dollar Index (DXY), the most current pause also coincided with the recent greenback’s temporary revival.

Novogratz stated that he prefers Bitcoin under this current financial situation, describing it as an “amazing environment” to buy the leading cryptocurrency. With “money growing on trees”, “another possible trillion-dollar stimulus package”, and “global money printing orgy”, Novogratz says that this is the year for bitcoin.

Investing in Cryptocurrencies

The billionaire investor Mike Novogratz thinks that global investors should hold Bitcoins in their portfolios. In his recent advice last month, he said that investors should watch Bitcoin and gold. He is a well-known investor and a famous hedge fund manager. He is a big believer in cryptocurrencies, and in 2017, he told the press that 20% of his net worth was in Bitcoin and Ethereum. He is also known for his price predictions. In 2017 December, Novogratz predicted the bear market prices and continues making price predictions.

Billionaire Stan Druckenmiller Owns Less Bitcoin than Gold, but says BTC has Better Risk-Return Potential

“I’m a bit of a dinosaur, but I have warmed up to the fact that Bitcoin could be an asset class,” said billionaire Stanley Druckenmiller during an interview with CNBC. Stan Druckenmiller, a billionaire hedge fund investor has recently hopped on the Bitcoin bandwagon.

Stan Druckenmiller, one of the world’s top money managers, and previous Chief Strategist for George Soros has an estimated net worth of $5.8 billion according to the Bloomberg Billionaires Index. As reported previously by Blockchain.News in May, Druckenmiller expressed doubts about the US equities market logging a V-shaped recovery, with emphasis on that government stimulus programs would not be enough for a post-pandemic economic recovery.

The billionaire revealed that he owns Bitcoin, however, he added that he owns “many more times gold” than he owns Bitcoin.

“I own many more times gold than I own Bitcoin, but frankly, if the gold bet works, the Bitcoin bet will probably work better because it’s thinner and more illiquid and has a lot more beta to it.”

Bitcoin and gold’s correlation has hit multiple highs this year and has been trending upwards recently. Bloomberg previously referred to Bitcoin as “digital gold,” as the digital currency has shown safe haven properties.

Druckenmiller expressed his views on the world’s largest cryptocurrency, saying:

“It has a lot of attraction as a store of value both to millennials and the new West Coast line. It has been around for 13 years, and with each passing day, it picks up more of its stabilization as a brand.”

Druckenmiller: From not wanting to own any Bitcoin to “owning a tiny bit” of BTC

Since the election has come to an end, the US dollar has weakened drastically, while Asian currencies have strengthened. Citi Private Bank strategists predict that there could be a weaker dollar ahead, given that the Biden administration would reduce uncertainty in international trade policy.

Analysts believe that as there would be a smaller stimulus package than expected, the US dollar is poised to further weaken. Druckenmiller believes that there is a high probability that the US dollar would witness inflation in the next five or six years. Although Druckenmiller has not specified the amount of investment he has made in Bitcoin, he said:

“I do own a tiny bit of it but I do own a lot more gold. Gold is a five thousand year brand as a go-to asset in terms of inflation.”

Druckenmiller has drastically changed his stance on Bitcoin since 2019, as he said he would not be interested in placing any of his $4.4 billion worth at the time into the cryptocurrency. At the time, the billionaire said:

“I don’t think I’m a neanderthal, which is what I’ve been called when I’ve said I didn’t want to own Bitcoin.”

Druckenmiller believes that Bitcoin’s price volatility has been a major entry barrier for him and that he would neither long nor short Bitcoin anyway as he did not understand why it has inherent value.

The billionaire is not the first skeptic that has started to believe in Bitcoin, as MicroStrategy’s CEO, Michael J. Saylor has also once been doubtful towards Bitcoin, and is now hodl-ing 17,732 Bitcoins, worth over $271 million at press time.

Image source: Forbes

One of the Richest Men in Mexico Invests in Bitcoin, saying “Paper Money is Worth Nothing”

One of the wealthiest men in Mexico, Ricardo Salinas Pliego has just revealed that he had invested 10% of his liquid portfolio in Bitcoin (BTC). The Mexican billionaire believes that cash is “worth nothing,” as he posted a video showing banks throwing out paper money.

He explained in his post that “paper money is worth nothing, and that “it is always good to diversify our investment portfolio.” In the video, Venezuelan bolivars have been thrown out, as the country has been infamous for its escalating inflation crisis.

Pliego also tweeted and recommended the book “The Bitcoin Pattern,” explaining that Bitcoin could project citizens from “government expropriation.” He then revealed that 10 percent of his liquid portfolio is now in Bitcoin (BTC). According to a translated version of the tweet, he said:

“Today I recommend THE BITCOIN PATTERN, this book is the best and most important to understand #Bitcoin. Bitcoin protects the citizen from government expropriation. Many people ask me if I have bitcoins, YES. I have 10% of my liquid portfolio invested.”

According to Bloomberg’s Billionaire Index, Pliego has a net worth of more than $11.8 billion and is currently in the top five of the richest people in Mexico. Pliego ranks 165 on Bloomberg’s Billionaire Index.

Dan Held, the Growth lead at Kraken also commented on the billionaire’s investment in Bitcoin, saying:

“The institutional herd is stampeding. Mexico’s third richest man just disclosed that 10% of his net worth is in Bitcoin.”

Pliego then responded to Held’s tweet, emphasizing the 10 percent invested was of his liquid portfolio, and not his net worth. Pliego added that 90 percent of his liquid portfolio has been invested in precious metal miners. The billionaire responded to Held’s comment about the institutional stampede, saying:

“For me it’s no “stampede”, started with Grayscale at 800 dlls BTC in 2016.”

Not the only billionaire who has invested in Bitcoin recently

Stan Druckenmiller, a billionaire hedge fund investor has recently hopped on the Bitcoin bandwagon. “I’m a bit of a dinosaur, but I have warmed up to the fact that Bitcoin could be an asset class,” said billionaire Stanley Druckenmiller during an interview with CNBC.

Stan Druckenmiller, one of the world’s top money managers, and previous Chief Strategist for George Soros has an estimated net worth of $5.8 billion according to the Bloomberg Billionaires Index. As reported previously by Blockchain.News in May, Druckenmiller expressed doubts about the US equities market logging a V-shaped recovery, with emphasis on that government stimulus programs would not be enough for a post-pandemic economic recovery.

Billionaire John Paulson Describes Crypto as “Worthless Bubble”, Will Eventually Crash to Zero

John Paulson, a renowned billionaire hedge fund manager, remains strongly against investing in cryptocurrencies.

On Monday, August 30, Paulson had an in-depth interview with Bloomberg TV where he called cryptocurrencies a “bubble”, and their values will eventually plunge to zero.

“I would say that cryptocurrencies are a bubble. Regardless of where they’re trading, today will eventually prove to be worthless. Once the exuberance wears off, or liquidity dries up, they will go to zero. I wouldn’t recommend anyone invest in cryptocurrencies,”

Paulson described crypto assets as a “limited supply of nothing”, referring to a fixed quantity that some coins have, including Bitcoin’s 21-million-coin cap – though others have no such limit.

When asked why he does not just short cryptocurrency, Paulson stated that crypto prices are too volatile, making such an asset class too risky for him to short or place bets against. He singled out the extreme volatility of cryptocurrency, stating that a short bet could ruin him in the short term, even if he were proven right in the long run.

Paulson said: “In crypto, there’s an unlimited downside. So even though I could be right over the long term, in the short term, I’d be wiped out.”

Paulson told Bloomberg that he is betting on another alternative asset – gold – as a safe haven for now. He revealed that he has favoured buying gold, saying that precious metal tends to perform well during high-inflation periods. He stated that he continues to buy gold in anticipation of rising inflation as the money supply expands.

Paulson, the hedge fund manager who made a fortune worth $20 billion by predicting the downfall of the US housing market in 2008, now is predicting that cryptocurrencies will go to zero.

Interest Among Hedge Funds

Paulson’s hard-line against cryptocurrency stands in complete contrast to most of his hedge fund colleagues who recently embraced Bitcoin and other digital tokens.

Some famous hedge fund managers, such as Paul Tudor, are Bitcoin investors. In contrast, Brevan Howard, a European hedge fund management firm, has put a small percentage of its funds in cryptocurrency. Its co-founder, billionaire Alan Howard, is a big supporter of the crypto space.

In February. A veteran US investor and hedge fund manager, Bill Miller approved his investment management firm, Miller Value Partners, to invest 15% of its assets into Grayscale’s Bitcoin Trust.

In May, Ray Dalio, the founder and co-chief investment officer of the world’s largest hedge fund firm, Bridgewater Associates, revealed that he bought some Bitcoins and said he would prefer investing in Bitcoin rather than bonds.

Hedge funds are not only well aware of the risks but also the long-term potentials of cryptocurrencies. The increased interests among hedge fund managers contrast sharply with prevalent scepticism among more conventional asset managers concerned about the high volatility of crypto assets and uncertainty concerning regulation.

Hedge Fund Billionaire Ken Griffins Manages to Outbid for Copy of US Constitution

Ken Griffin, the founder and CEO of hedge fund company Citadel LLC, acquired a first-edition copy of the US Constitution at a Sotheby’s auction house on November 18.

The billionaire investor paid $43.2 million to secure the document, beating an outbidded group of crypto investors- ConstitutionDAO who also had the same interest of acquiring the extremely rare first-run printing.

Griffin, who is also an art collector, plans to loan the piece to the Crystal Bridges Museum of American Art in Bentonville, Ark, a free museum founded by Philanthropist and Walmart heiress Alice Walton.

Citadel confirmed that Griffin made the winning bid that beat out thousands of crypto investors who worked together to secure the document at Sotheby’s auction.

Sotheby’s stated that the sale set a world auction record for any manuscript, book, historical document, or printed text, as the amount was more than double its $20 million high estimates.

Meanwhile, Griffin talked about the development and said: “The U.S. Constitution is a sacred document that enshrines the rights of every American and all those who aspire to be. That is why I intend to ensure that this copy of our Constitution will be available for all Americans and visitors to view and appreciate in our museums and other public spaces.”

The document was in private hands in the past, having last auctioned in 1988 for $165,000 by Dorothy Tapper Goldman’s late husband, S. Howard Goldman.

Griffin’s triumph over the group was interesting because he has been a vocal sceptic of the use and value of crypto assets.

Crypto Crowdfunding Fell Short

As reported by Blockchain.News, the auction drew widespread attention last week because of an attempt by the crypto coalition “ConstitutionDAO” to crowdfund a winning bid.

“ConstitutionDAO,” a group of more than 17,000 crypto investors, popularly as recognized as pulled together more than $40 million worth of Ether via a decentralized autonomous organization – a kind of computer protocol –earlier last week in a bid to win the auction.

The crypto group planned to seek a partner to publicly display the document (the printing of the constitution).

The group clarified based on frequently asked questions that the funds would be redeemable (providing anyone with an option for a refund) minus a transaction fee.

Since the group has lost the bid, it is now upon them to decide what will happen to all the cash they raised. However, some members shared plans to potentially allocate the funds towards future auctions.

Unlike an ordinary pool of investors, DAOs rely on crypto technology to track and validate participation in the group and to facilitate the inner workings of how to raise and distribute large amounts of cash.

Image source: CNBC