Bitcoin has emerged as a capital preservation tool for wealthy investors amid increasing uncertainty, according to Michael Sonnenfeldt, founder of Tiger21, speaking to CNBC.
The assets of members in the expert-led network of ultra-wealthy investors amount to $200 billion. The share of the leading cryptocurrency in portfolios ranges from 1% to 3% (up to $6 billion).
“Gold is for traditionalists, bitcoin is for the new age, but they often play the same role. They are perceived as a capital preservation tool, beyond government control. People feel they can find refuge here,” Sonnenfeldt shared.
Earlier, Interactive Brokers founder Thomas Peterffy suggested investors allocate 2-3% of their capital to bitcoin.
Previously, Bridgewater Associates founder billionaire Ray Dalio described digital gold as “hard money.”