Thomas Peterffy on Bitcoin Investment
Thomas Peterffy, the billionaire founder of Interactive Brokers (NASDAQ:IBKR) Group Inc., has suggested that investors allocate a small portion of their net worth to Bitcoin, citing the cryptocurrency's volatility.
In a recent interview on Bloomberg Television, Peterffy recommended that "people put maybe 2% to 3% of their net worth into Bitcoin," while also revealing that his firm restricts clients from investing more than 10% of their assets in the digital currency.
Peterffy, whose net worth is approximately $53 billion according to the Bloomberg Billionaires Index, expressed a cautious stance towards cryptocurrencies. He admitted to being "sort of scared" of crypto due to its significant price swings and the absence of underlying value, comparing it to the paper dollar which he believes is essentially valueless.
Despite his reservations, Peterffy sees the importance of having exposure to Bitcoin. Interactive Brokers, recognizing the growing interest in digital currencies, began offering cryptocurrency trading in 2021. Through a partnership with Paxos Trust Co., the brokerage allows users to trade Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
Looking beyond cryptocurrencies, Peterffy shared his perspective on the broader economic impact of the Trump administration. He anticipates that the incoming administration will bring about reduced regulation and less interference with private enterprise. Peterffy expressed his "extreme optimism" for the next four years and beyond, despite concerns about potentially overextended markets.
He also forecasted a future market downturn, though he predicted it would not be particularly severe or extensive, saying, "But I don’t think it is going to be a very violent — it will not go very far."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.
Comments (0)