Guggenheim CIO Scott Minerd: Investors Should Put a Few Percent Into Bitcoin
Guggenheim Chief Investment Officer (CIO) Scott Minerd believes all investors should allocate a few percent of their portfolio to Bitcoin.
Speaking in a Bloomberg interview, Minerd suggested a 2% portfolio allocation could quite easily turn into 20%, hinting at the potential Bitcoin has to rise.
‘Two percent of your portfolio will be twenty percent of your portfolio before this is over,’ said the Guggenheim CIO. ‘So, you don’t want to get too overweight, but certainly an allocation of a couple of percent of your portfolio seems to be a prudent play.’
Time To Take Some Earnings Off The Table?
However, Minerd did suggest we were ‘moving into a speculative frenzy’ in the short term, and hinted at exchanges’ inability to to meet demand due to rising retail interest.
Minerd said it might be a shrewd move to take some earnings off the table due to the frenzy, but remains bullish long term.
The Guggenheim CIO, who said last year that a fair valuation of Bitcoin is around the $400k mark. A $400k Bitcoin price would bring the overall market cap close to gold’s, which brought Minerd to his valuation.
Minerd explained how he sees Bitcoin as an improvement on gold, highlighting its portability and spendability as two examples.
The Guggenheim CIO also mentioned NFL star Russel Okung’s decision to be paid half of his salary in Bitcoin, suggesting it was proof of Bitcoin’s acceptability.
Minerd was pressed on whether Guggenheim had already allocated some of its funds into Bitcoin, but the CIO said they were waiting for feedback from their clients before investing with the mutual funds, but had moved some into their private funds.
Scott Minerd Joins The List of Wall Street Heavyweights
Scott Minerd isn’t the only Wall Street heavyweight to publicly back Bitcoin. Last year saw some of the biggest names on Wall Street lay their weight behind Bitcoin.
Paul Tudor Jones is arguably the biggest name on Wall Street, and the legendary hedge fund calling Bitcoin the ‘fastest horse’.
Tudor Jones has publicly spoken a few times since, and always mentions his fears about the Fed’s desire to print money, and how Bitcoin and gold will absorb much of the newly created value.
Stanley Druckenmiller is a another Wall Street legend who has publicly backed Bitcoin. Druckenmiller also believes Bitcoin and gold will absorb much of the money being printed, as investors look for a safe store of value.
‘If the gold bet works, the Bitcoin bet will work better,’ said Druckenmiller. ‘I’m a bit of a dinosaur, but I have warmed up to the fact that Bitcoin could be an asset class that has a lot of attraction as a store of value.’
A Few Percent In Bitcoin Will Benefit Any Portfolio
With governments printing unlimited amounts of “free cash” savvy investors know scarce assets are the perfect hedge.
Paul Tudor Jones, Stanley Druckenmiller, and Guggenheim CIO Scott Minerd have all publicly backed Bitcoin, and the herd is gaining pace.
They see Bitcoin as the ‘fastest horse’ and are recommending their clients allocate a couple of percent into Bitcoin.
Allocating two percent of a portfolio to Bitcoin, might end up being the wisest of moves for any investor, but surely four percent would be wiser?
Author: Tommy Limpitlaw
Where is the best place to buy Bitcoin from in Pakistan?
Now that Bitcoin is legal in Pakistan there are some exchanges to buy from, but be careful as there are some scam websites. The most liquid and global exchange for Pakistanis to buy Bitcoin with the Pakistani Rupee PKR is is Paxful. It is a peer-to-o-peer exchange and you can buy Bitcoin with pretty much anything the seller is willing to accept. Check the review here…
Why should I buy Bitcoin?
Bitcoin is a peer-to-peer money that nobody can manipulate. It’s all set in the Bitcoin codebase which is secured by hundreds of thousands of computers all around the world. Bitcoins can be sent by anybody and no third party is need to verify the transactions, and nobody can stop Bitcoins being sent.
Can you buy less than 1 Bitcoin?
Yes. Every Bitcoin can broken down into 100 million bits. They are known as satoshis, after the pseudonymous creator Satoshi Nakamoto. And some companies will let you buy as little as $1 worth of Bitcoin, which at time of writing is worth about 11,000 satoshis. There are many companies that have a system for dollar cost averaging (DCA). This is a great way to buy Bitcoin, and is known in the space as ‘Stacking Sats’. Basically, what you do is set up small automatic, recurring payments to buy Bitcoin (or sats), and you DCA over time.
Can you lose money with Bitcoin?
You certainly can lose money on Bitcoin. Many new investors see the gains Bitcoin has made, and with social media everyone seems to think they’re professional traders. But the truth is, Bitcoin’s biggest gains have come from buying Bitcoin and holding on long term and riding the market. People expecting only gains, quickly lose faith when it crashes and lose money.
A Bitcoiner since 2017 and a Bitcoin Maximalist since 2018, Tommy is our main writer and editor at Bitcoin Maximalist. Other than researching and writing about Bitcoin, Tommy loves spending time with his family and supporting his beloved Leeds United.