Former insurance chief praises Bitcoin

From critic to advocate – former insurance chief praises Bitcoin

The former head of Prudential Financial revises his criticism, calling Bitcoin an „attractive“ hedge against inflation.

George Ball, a veteran of the American financial industry, advises investors to invest a „small portion“ of their portfolios in cryptocurrencies. In doing so, he is making a real about-face from his Bitcoin Machine previous criticism of the asset class.

In an interview with Yahoo Finance, Ball accordingly described cryptocurrencies such as Bitcoin (BTC) as an „attractive“ way to protect against inflation. His comments come against the backdrop that the US is currently discussing a US$1.9 trillion Corona bailout. US dollar Corona bailout package that would pay out a one-time payment of up to 1,400 US dollars to every American.

Since this money has no direct counterpart, investors fear a further devaluation of the US dollar as a result

Ball shares this fear, which comes with a real change of heart for him: „I’ve never said this before. Actually, I’ve always been an opponent of blockchain, cryptocurrencies and Bitcoin, but if you look at the current situation, it’s clear that the government can’t stimulate the economy forever. The flood of money has to stop at some point.“

To this he adds:

„Cryptocurrencies represent a fundamental paradigm shift that makes them an attractive little piece for almost any portfolio.“

Provided higher inflation leads to a devaluation of national currencies in the long run, „cryptocurrencies will have a lot of appeal,“ the expert therefore believes.

Ball was chairman of the board of the large American insurance company Prudential Financial from 1982 – 1992, which makes him, as it were, one of the leading representatives of traditional finance. His previous criticism of Bitcoin is therefore hardly surprising, but in August 2020 this attitude changed for the first time. Thus, he already advised investors at that time to get into the market-leading cryptocurrency, whose price at that time was still at 12,000 US dollars. A good tip, because in the meantime this value has quadrupled to 48,000 US dollars.

Accordingly, more and more established Wall Street giants are taking a liking to Bitcoin. Even influential banks like JPMorgan and Morgan Stanley are now interested in the crypto market leader. The oldest American bank BNY Mellon even offers crypto custody services.