Bitcoin is a ‘non-sensical’ currency that is nevertheless meaningful, says the UK Investment Manager.

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His company added exposure to Bitcoin prior to the winter boom.

The president of the British investment fund says Bitcoin (BTC) is a seemingly “non-sensical” asset—but one that still makes sense since the coin’s winter price movement proved lucrative. In November, his company, Ruffer Investment, converted a portion of its gold reserves to Bitcoin.

In November, Ruffer Investment Company Limited reallocated 2.5 per cent of its Multi-Strategies Portfolio from gold to Bitcoin as a precaution against the “continuous devaluation” of the fiat. Since then, the valuation of gold has risen by 4 per cent, whilst the value of bitcoin has increased by 92 per cent—a amount that momentarily grew to 123 per cent during BTC’s short stay above $40,000 on Jan. 10.

Writing in an investment analysis for the final quarter of 2020, Ruffer Chairman Jonathan Ruffer said that after much internal deliberation, his company had added exposure to Bitcoin because he felt that BTC might threaten Gold’s status as a single ‘supra-currency.’ He wrote the following:

“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.”

As of Nov. 30, Ruffer had 20.3 billion pounds ($27.5 billion) of funds under administration. The business was founded in 1994 and employs 330 employees, representing about 6,600 clients from pension plans, families, charities and individuals worldwide.

Jonathan Ruffer told readers on the company’s website that even though Bitcoin appeared to be a “non-sensical” commodity, it was one that matched the company’s view on the world:

“Yes, it is a seemingly non-sensical asset — but one that makes absolute sense for how we see the world.”

Despite bitcoin’s rise to new all-time highs over the winter era, Ruffer said he was only “nervely satisfied” with the result, and that keeping consumers safe was more important than short-term price pumps.

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