Thomas Peterffy, the billionaire founder of Interactive Brokers Group, has recommended that investors hold 2-3% of their net assets in Bitcoin. He said his firm only allowed its clients to put up to 10% of their total assets in cryptocurrencies.
Peterffy believed that anyone who didn’t own Bitcoin should find ways to own some, but not too much, due to the risks associated with price fluctuations. However, he was concerned that cryptocurrencies were as valuable as fiat currencies because they held no intrinsic value. Having grown up in a socialist society, Peterffy was convinced that a free market economy was the only way to run society efficiently.
Petervi believes everyone should invest a little in Bitcoin but with caution.
Peterffy, president of retail brokerage Interactive Brokers, said investing a small amount in Bitcoin is advisable. However, he cautioned against overexposure to cryptocurrencies in general as it is “dangerous.” Peterffy, who was initially critical of Bitcoin, argued that Bitcoin should be separated from the “real economy” as the Chicago Mercantile Exchange prepares to launch Bitcoin futures.
The Interactive Brokers boss went on to predict that Bitcoin could bring down the entire economy. Peterffy was surprised that the rapid collapse of crypto empire FTX in November didn’t cause a sharp Bitcoin correction. He also predicted a market pullback, though he predicted it wouldn’t be “very violent” or “go very far.”
Speaking to Bloomberg’s Sonali Basak from a Goldman Sachs Inc. conference, he revealed that he has invested “only a little” in cryptocurrencies since July 2021. He added that there is little chance of crypto emerging as a dominant currency at that time.
“Even I myself have invested a little bit of money in cryptocurrencies, because although the chances are, I think, that it will not be a viable market, I think there is a small chance that this will be a dominant currency, so you have to play the odds.
-Thomas Peterffy
Peterffy remained skeptical about Bitcoin’s value, saying it would either drop to zero or rise to $1 million. “I have no idea,” he said. However, he advised investors to use cryptocurrencies as a hedge against falling fiat currencies. Peterffy claimed that his platform was the most efficient for trading cryptocurrencies, other than Robinhood.
Interactive Brokers delivers AI-generated news for faster investment decisions.
Interactive Brokers has introduced AI-powered features to help investors make smarter, faster decisions. Steve Sanders, executive vice president of marketing and product development at Interactive Brokers, said AI has enabled the retail brokerage to deliver valuable insights in seconds. He said the new feature will help Interactive Brokers investors understand how breaking news is impacting their portfolios.
By harnessing the power of AI, the tool traces relevant market information, allowing clients to quickly search for important updates and giving them more time to make informed decisions about managing their investment portfolios. According to Interactive Brokers, the ability to filter asset classes related to news in portfolios and wishlists made it easier for investors to stay up to date, which directly impacted their investments.
Sanders explained that the AI-generated news summaries feature gave investors a powerful way to identify the most important information, making searches fast, impactful and easy to access.
