• The chairman of Starwood Capital Group says that governments continue printing money, but that no one can create more Bitcoin.

• He notes that Bitcoin is the only smart hedge in a world where there are such monetary policies.

• According to the billionaire, who says that 2-3% of his net worth is in crypto, the price of BTC has the potential to increase to $1,000,000.

Bitcoin has declined by about 12% this past week and over 20% in the past 30 days, yet billionaire investor Barry Sternlicht says it’s still the “smart hedge.”

The co-founder and chair of Starwood Capital Group explained all this at an event in Miami. He said that this was due to both the crypto’s foundations and governments’ insatiable appetite to print money.

Bitcoin can be used as a “smarthedging “

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Sternlicht also discussed the US and how devaluation could affect investors.

He pointed out that it is possible to have China and other countries joining forces in economic policies designed to devalue the dollar. He said that if this occurs, it would be beneficial for investors to hold a portion of their Bitcoin investment.

Although he maintains that Bitcoin has “no function other than [as] a store of value,” Sternlicht explained that it might be wise to have it as part of an investment as “a smart little hedge.”

Comparing Bitcoin to gold, the investor said the precious metal too, lacks any real value outside of what has been made of it. He explained that people can still have their gold jewelry but the same applies to silver, titanium and platinum.

BTC to $1 million

The billionaire also talked about Bitcoin’s future price, noting that volatility remains and that the benchmark cryptocurrency’s value could dip again after this week’s breakdown below $50,000.

However, he believes the market is set for a reversal and that Bitcoin could eventually spike to more than $1,000,000. He believes everyone, not just American investors, will want an asset that is “uniquely mineable,” which will help the BTC price.

He pointed out that prices falling to zero due to their small exposure to crypto will not cause too much damage. It would be very disappointing to invest in it, only for it to go on to reach $1 million.

The American billionaire is an astute entrepreneur, with Forbes rich list for 2021 estimating his net worth to be about $4.4 billion. He estimates that crypto makes up between 2% and 3% of his net worth.

Starwood Capital Group currently oversees over $100 billion in assets under management.

The tycoon shared his views on bitcoin and the market outlook during “The Future of Global Financial Centers”, a Miami event organised by media giant Bloomberg.