Money can’t buy happiness but what if Bitcoin can…
In a recent interview, entrepreneur Bill Pulte discussed Bitcoin allocation and its price outlook with host Natalie Brunell. The millionaire explained that it is necessary for families to invest in Bitcoin as,
“Bitcoin buys happiness because it takes people out of third world poverty…Happiness is economic freedom.”
Further explaining how much a family should allocate in its investment basket, he added,
“As much as they humanly can, within reason.”
He emphasized that people are worried about a “corrupt government that’s devaluing its currency” by printing more money. Therefore, he thought allocation to Bitcoin will instead bring economic power to the people. Apart from a humanitarian standpoint, Pulte thought that the U.S. is battling a sticky inflation crisis.
He emphasized that the inflation level reduces the worth of a dollar and can be tackled by Bitcoin, stating,
“I don’t understand why the Federal Government hasn’t bought Bitcoin.”
Additionally, he declared that he doesn’t buy the “fear porn” that the government will shut Bitcoin down. Instead, he maintained a bullish viewpoint on Bitcoin, predicting,
“I think we could see a million dollars a coin”
In this context, he advised Bitcoin investors to hold on to the asset long term. He isn’t the only industry voice who thinks Bitcoin is going to be very valuable in the future. MicroStrategy’s Michael Saylor had previously emphasized that Bitcoin is the way to store value. He said,
“Bitcoin is like Manhattan, if you owned it in the 1800s would you ever sell it or short it?… Holding BTC is a business strategy if you want to be rich you need to own a high-quality asset like BTC.”
In the context of family offices, a recent survey by Goldman Sachs also found that about 15% of family offices in the world, including 25% in the Americas, had invested in cryptocurrencies. These families earmarked around 1-3% of their portfolio for digital investment.
Meanwhile, more than half of non-crypto investors might initiate an exposure in the future, the report cited. As per an executive, the change was a result of the holdings being considered a hedge against inflation or a store of value.
However, while allocating an asset class, the widening wealth inequality can’t be ignored. According to analyst Lark Davis,
“If you can actually afford to go out and buy 1 Bitcoin today, congratulations. You are rich! Because 1 Bitcoin is worth more than the average annual income of the majority of the world’s citizens.”