The crypto market continues to add new ones to its losses, which were deepened by the LUNA collapse. Some analysts and traders see this crash as a buying opportunity in Bitcoin. Famous American billionaire Sam Zell, on the other hand, prefers to stay bearish on Bitcoin despite the big drop. Staying away from leading crypto, Zell explains what he likes for investment.
Famous billionaire prefers to stay away from Bitcoin (BTC)
American billionaire businessman and philanthropist Sam Zell recently joined CNBC’s ‘Squawk Box’. The famous billionaire said that Bitcoin is still not cheap at $ 21,000. The real estate giant used the following statements in its statement:
I basically stayed away from Bitcoin at all costs.
Sam Zell admits that he is still struggling to understand the security model of the flagship cryptocurrency. The billionaire believes that any cryptocurrency that is not supported in some way by the government will not work.
Earlier this Wednesday, the world’s largest cryptocurrency was just a hair’s way from breaking below the $20,000 mark. However, as we reported as Kriptokoin.com, it saw an intraday low of $ 20,079. In addition, BTC is far from its all-time high of $ 69,000.
Sam Zell bought gold to hedge inflation
By the way, the Fed announced the biggest rate hike in 28 years to curb inflation today. At first, expectations were 50 basis points, but after the last CPI data, it shifted to 75 basis points. And the 93% probability determined by the Fed Watch Tool has come true. The Fed made a historic 75 basis points increase. Since this increase was priced in the markets, there was no extreme reaction.
Still, some believe that Bitcoin is currently in oversold territory. Fidelity’s Jurrien Timmer is trying to prove that Bitcoin is actually cheaper than it currently looks. Timmer points to the strong fundamentals of the leading cryptocurrency for this.
On the other hand, Sam Zell has been among those who rejected cryptocurrencies for years. He said in December 2020 that he was ‘skeptical of Bitcoin’. But he acknowledged that this might be the answer. Sam Zell founded the private investment firm Equity Group Investments over 50 years ago. The famous billionaire became famous for his unique and contradictory approach to investment.
Last May, Sam Zell announced that he bought gold because of rising inflation, which he claimed reminded of the 1970s. However, just like Bitcoin, gold has apparently failed the test of inflation. Gold prices recently dropped to an 18-month low.
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