Interactive Brokers Founder Advocates for Limited Bitcoin Investments

Thomas Peterffy, the billionaire founder of Interactive Brokers Group Inc., has advised investors to allocate a small portion of their net worth to Bitcoin, while cautioning about the cryptocurrency's volatility. In a recent interview with Bloomberg Television, Peterffy suggested that "people should invest perhaps 2% to 3% of their net worth into Bitcoin," while also revealing that his company restricts clients from investing more than 10% of their holdings in digital currencies.

With a net worth of approximately $53 billion according to the Bloomberg Billionaires Index, Peterffy has maintained a cautious stance toward cryptocurrencies. He admitted to being "somewhat afraid" of crypto due to significant price fluctuations and the lack of a fundamental value, comparing it to paper currency, which he believes is essentially worthless.

Despite his reservations, Peterffy recognizes the importance of exposure to Bitcoin. Noticing an increasing interest in digital currencies, Interactive Brokers began offering cryptocurrency trading in 2021. Through a partnership with Paxos Trust Co., the brokerage allows users to trade Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.

Looking beyond cryptocurrencies, Peterffy shared his views on the broader economic impact of the Trump administration. He anticipates that the next administration will reduce regulations and interfere less with private enterprise. Despite concerns about potentially overly expanded markets, Peterffy expressed being "excessively optimistic" for the next four years and beyond.

He also predicted a market downturn in the future but stated that he does not expect it to be particularly severe or extensive, saying, "But I don’t think it will be very severe – it won’t go too far."