The chairman of a British investment firm says Bitcoin (BTC) is a seemingly “non-sensical” asset — but one that still makes sense after the coin’s winter price movement proved profitable. His firm, Ruffer Investment company, converted a portion of its gold holdings into Bitcoin in November.
Ruffer Investment Company Limited reallocated 2.5% of its Multi-Strategies Fund from gold to Bitcoin in November as a hedge against the “continued devaluation” of fiat. Since then, the value of gold appreciated by 4%, while the value of Bitcoin grew by 92% — a figure which briefly rose to 123% during BTC’s short stay above $40,000 on Jan. 10.
Writing in an investment review for the final quarter of 2020, Ruffer chairman Jonathan Ruffer said that after much internal deliberation, his firm had added exposure to Bitcoin because it thought BTC could challenge gold’s status as the one “supra-currency”. He wrote:
“Our underlying reasoning is that bitcoin is becoming a challenger to gold’s standing