Crypto ‘Hypergrowth’ Can Beat Inflation, Says iCapital’s Anastasia Amoroso

(Bloomberg) -- With higher inflation and more modest stock gains likely looming ahead in the new year, Anastasia Amoroso, chief investment strategist at iCapital Network, says investors should be looking at 2021’s standout asset class: cryptocurrencies. 

“The 60/40 portfolio is just not going to be enough to beat inflation and deliver returns,” Amoroso said Thursday on “Bloomberg Markets. “The thing you might want to do is peel a little bit from the 60 and allocate to something like cryptocurrencies, because if the portfolio has a chance of beating inflation, you have to have hypergrowth in the portfolio.”

Amoroso noted that cryptocurrencies have risen this year by “something like 200%,” and said that Bitcoin has “classic inflation-hedging characteristics,” including its limited supply alongside growing demand.

And likening digital coins’ potential to the early days of Netflix Inc. and Meta Platforms Inc., then known as Facebook, she said that investors should consider crypto’s network value.

“It’s all about adoption. It’s about the number of new wallets. The number of new addresses and we’ve seen that number surge this year,” Amoroso said. “I think there’s a lot more potential ahead.”

She also recommended private credit as an inflation hedge, “because we badly need an alternative to fixed income,” and real estate, “where you get sectors like apartments or leisure and hospitality that give you a pretty good inflation pass-through.”

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