Ashton Kutcher: Bitcoin Is a Safe Haven
In a tweet to 17 million followers last week, the Hollywood A-lister hinted he’s worried about a Trump or Sanders nomination. Bitcoin, he believes, could be the best hedge.
Sanders supporters were not impressed. Twitter fans were outraged that the Democratic presidential candidate was placed in the same category as Donald Trump. His wealth, some argued, means Kutcher is out of touch with the middle class.
But he may be onto something.
Kutcher has been building his tech credentials. Over the last few years, he has backed many successful startups, including Skype, Uber, and Airbnb. Kutcher’s venture fund A-Grade Investments has also invested in BitPay, a Bitcoin payment processor. (Source: “10 Celebrities Investing in, Using and Talking About Bitcoin,” CoinDesk, May 3, 2014.)
Why do I get the feeling that the best hedge against a Sanders or Trump nomination may be buying bitcoin?
— ashton kutcher (@aplusk) January 29, 2016
Because of the hard limit on the number of coins that can be mined, Bitcoin is a scarce asset. In theory, this means the cryptocurrency is a better store of value than government fiat money.
We have already seen examples of Bitcoin being used as a hedge. Prices surged following capital seizures in countries like Greece, Cyprus, and Venezuela. After the devaluation of the yuan, Chinese savers have turned to alternatives like Bitcoin.
Should U.S. investors stock up on the digital currency, too? Today’s polarized discourse is worrying.
Bernie Sanders is surging in the Democratic primaries. The 74-year-old socialist is pushing for new ideas and a revolt against the “billionaire class.” He wants more government spending, payroll levies on workers, and higher taxes for top earners.
Right-wing candidates are growing more extreme, too. Republican frontrunner Donald Trump has called for a ban on Muslim immigration and proposed a trade war with China. His fans adore his authoritarian image as a strongman who is going to shake things up.
While Trump and Sanders are a long way from the White House, polls suggest both have a real chance of winning. If the radical fringe takes over, Kutcher could be right. Extreme policies could spark a rush out of U.S. dollars and into safe havens like Bitcoin.