Insurance giant Prudential's former CEO makes a surprising statement: It's time to buy Bitcoin

The current chairman of financial services company Sanders Morris Harris and former CEO of insurance giant Prudential, George Ball, stated in an interview with Reuters yesterday that Bitcoin or other cryptocurrencies may soon become a sought-after hedging asset.

Bitcoin in the Eyes of Traditional Finance

When George Ball was asked how investors should adjust their portfolios in such uncertain times, the unexpected recommendation came from this veteran of the traditional finance world, who surprisingly suggested Bitcoin, a digital asset that has only been around for a short period of time.

"I had never mentioned it before, as I have always been a blockchain and Bitcoin opponent, but if you're looking at the current situation, you'll find that governments can't continue to stimulate the markets forever. The liquidity bubble will end, and governments will eventually have to bear the cost for these stimulus measures, financial deficits, and seemingly wise subsidies."

George Ball further pointed out that if the Federal Reserve keeps printing money, it could lead to currency devaluation and may even jeopardize TIPS (US Treasury Inflation-Protected Securities). Therefore, in such a scenario, high-net-worth investors or traders might choose Bitcoin or similar assets as part of their investment portfolios. Interestingly, even the Reuters reporter was shocked by George Ball's response, stating:

"Wow, I never expected those words to come from you."

In the interview, George Ball boldly claimed that many people will incorporate Bitcoin and other cryptocurrencies into their investment portfolios after Labor Day (the first Monday in September each year).

The Rise of Bitcoin

It is widely believed that the growing interest of traditional investors in Bitcoin is closely related to central banks around the world printing money extensively, making Bitcoin appear to some as the best hedge against inflation. At the time of George Ball's comments, even the Oracle of Omaha, Warren Buffett, shifted assets from financial stocks to other hedging assets.

Buffett's investment company, Berkshire Hathaway, announced last week that it had reduced its stakes in major US banks, selling about 86 million shares of Wells Fargo and 35.5 million shares of JPMorgan. Instead, the company made a bet on the development of the gold market by acquiring around 21 million shares of Barrick Gold, the world's largest gold mining company, for $563 million.

However, from recent market conditions, it seems that gold is no longer the only choice for hedging against inflation, as more cases emerge of traditional financial institutions or investors entering the Bitcoin trading market. Nasdaq-listed company MicroStrategy announced in a press release on August 11 that the company had invested $250 million in Bitcoin to hedge against the severe impact of the Federal Reserve's money printing on the macro economy.

On the other hand, Dave Portnoy, the founder of the well-known sports and pop culture forum Barstool Sports and a day trader in the US stock market, under the guidance of the Winklevoss twins, gained a preliminary understanding of Bitcoin and transitioned from a Bitcoin skeptic to a Bitcoin holder upon hearing Elon Musk's plans to mine gold in outer space.