Bitcoin is a seemingly “non-sensical” asset, the chairman of a British investment company claims, but one that still makes sense after the winter price movement of the coin proved profitable. In November, his firm, Ruffer Investment Company, turned a portion of its gold reserves into Bitcoin.
In November, Ruffer Investment Company Limited reallocated 2.5 percent of its Multi-Strategies Investment from gold to Bitcoin as a precaution against Fiat’s “continued devaluation.” Since then, the valuation of gold has risen by 4%, while Bitcoin’s value has expanded by 92%, an amount that momentarily increased to 123% during BTC’s short stay over $40,000 on January 10.
According to cointelegraph.com, Ruffer Chairman Jonathan Ruffer, writing in an investment review for the final quarter of 2020, said that his company had added exposure to Bitcoin after much internal deliberation because it thought that BTC could challenge the status of gold as the “supra-currency. He had written: “Our underlying reasoning is that bitcoin is becoming a challenger to gold’s standing as the one supra-currency, the thing to own when fiat currencies are kerplunked.”
Ruffer said Bitcoin was a “unique beast” which was subject to a “longish” assessment before being introduced to the multi-strat fund: “We have done much work on assessing the danger that bitcoin is a wrong’un. We have been watching it for a longish time, and our judgement is that it is a unique beast as an emerging store of value, blending some of the benefits of technology and gold.”