3 cryptocurrencies owned by billionaires

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3 cryptocurrencies owned by billionaires

Over the past decade, the cryptocurrency market has become increasingly diverse and gaining legitimacy as some of the world’s most renowned billionaires consider them valuable assets to hold in portfolios. While these financial titans have varying reasons for their rationale, they all share a common understanding: cryptocurrencies, such as Bitcoin (BTC -0.23%), Ethereum (ETH 2.07%)and Polygon (MATIC 3.32%)are leading the way as adoption of the asset class increases.

Ethereum

Neil Patel (Etherum): The founder of the world’s largest hedge fund company, Ray Dalio is widely regarded as an expert on all things macroeconomics and markets in general. And he’s never been shy about sharing his views with the general public, whether through books or blog posts.

In fact, one of Dalio’s most popular comments recently that “cash is always trash” supports his reasoning for owning Bitcoin as a hedge against dollar depreciation. But that’s not the only cryptocurrency he owns. In December 2021, Dalio mentioned that he owns Ethereumas well.

Why would Ray Dalio, a macro expert and proponent of Bitcoin, also be interested in holding Ether? First of all, Dalio is a big proponent of portfolio diversification, so not putting his entire crypto allocation into Bitcoin could just be a way to reduce overall risk and gain exposure to the world’s second most popular digital asset. .

Also, I think Dalio is starting to get to grips with Ethereum’s massive potential. Ethereum smart contract The feature and the vast ecosystem of developers hope to disrupt a wide range of industries, the most notable being financial services. This is an industry dominated by middlemen that Ethereum hopes to eliminate. Moreover, the merge completedwhich converted the Ethereum blockchain into a proof-of-stake model, paves the way for the network to scale faster to handle more transactions and lower fees.

Because his prospects are being watched very closely by the smartest and most prominent investors, it might be a good idea to follow in Ray Dalio’s footsteps and consider buying Ethereum, if you haven’t already. Cryptocurrencies are an extremely nascent asset class, so the upside potential is still huge. But because the risk remains undeniably high, it is best to allocate only a small percentage of your portfolio to ether.

Bitcoin

Michael Byrne (Bitcoins): Paul Tudor Jones is the legendary investor at the head of Tudor Investment Corporation and currently has a net worth of nearly $7.5 billion. He started trading cotton futures in the commodities market in 1976 and has run Tudor Investment Corporation since 1980, so he’s seen it all in a variety of bull and bear markets.

He is well known for predicting the stock market crash of 1987. Jones also had the foresight to be open-minded about Bitcoin, becoming one of the first major figures in the traditional asset management world to step up. speak in his favour.

Jones views Bitcoin as a unique asset. He views it as a hedge against inflation, with the added bonus that it attracts some of the best and brightest minds in the world to work there. Jones believes that the level of intellectual talent entering the crypto industry is a strong reason to own Bitcoin.

He says that “What I learned is that Bitcoin has this huge contingent of really smart, sophisticated people who believe in it… You have this group of people around the world who are dedicated to seeing Bitcoin succeed and become a mundane store of value.” Jones sees this community almost as a call option on Bitcoin’s store of value status, believing that “I’ve never seen an inflation hedge where you also have the kicker that you also have great intellectual capital behind.”

The legendary investor confirms that his portfolio has “small, single-digit” exposure to Bitcoin, but for a multi-billion dollar fund, that’s a sizable amount of money.

Jones is one of the most renowned investors of recent decades. I think his approach here makes a lot of sense for investors of all experience levels, which is to view bitcoin as a hedge against further global currency devaluation, but with the added benefit of a lot of smart people working there . Likewise, I think his allocation of a small single-digit percentage of his overall portfolio makes sense for all investors.

Polygon

RJ Fulton (Polygon): Mark Cuban has earned a reputation over the past four decades as one of the most prolific technology investors of our time. Since his early investments in the industry during the internet boom of the 1990s, he has amassed a fortune of over $4.5 billion. No stranger to emerging technologies, Cuban is a fan of cryptocurrencies.

He has a diversified portfolio in the industry, which includes both companies offering blockchain-based products, such as non-fungible token (NFT) marketplace OpenSea, as well as cryptocurrencies themselves. Cuba has a handful of the most popular cryptocurrencies like Bitcoin and Ethereum, but one that might surprise is the increasingly popular layer 2 blockchain, Polygon.

Polygon is unique because instead of trying to create an alternative to Ethereum, it offers a scaling solution to help the blockchain run more efficiently. Polygon processes Ethereum transactions off the main blockchain and then adds them at a later date. This reduces fees, increases speeds, but most importantly maintains compatibility with Ethereum.

back in May 2021, rather than just owning the cryptocurrency, Cuban invested directly in the blockchain. While the size of his stake is unknown, the crypto enthusiast is well aware of Polygon’s future potential.

Cuban’s website describes Polygon as the “first well-structured and easy-to-use platform for Ethereum scaling and infrastructure development.” And Cuban himself said, “I was a Polygon user and find myself using it more and more.”

Cuban isn’t the only one to notice Polygon. Just this year Meta (NASDAQ: META), Coca Cola (NYSE:KO)and even disney (NYSE: DIS) have all partnered with Polygon for various reasons. Since Cuba’s initial investment in May 2021, Polygon’s price has more than halved and is down nearly 75% from its November all-time high. Yet even with the decline, Polygon’s accomplishments this year make Cuba look like a scholar again.

Like many other cryptocurrencies, Polygon’s price has taken a hit this year. Rather than seeing this as a reason to sell, investors should look at the big picture and invest for the long term, just as Cuba did. When considering Polygon’s long list of accomplishments this year and its future potential, now might be the time to add MATIC to your portfolio.

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