More and more large companies and investors are buying Bitcoin.
In the course of 2020, many well-known players in the traditional financial sector have invested in Bitcoin ( BTC ), including investment guru Paul Tudor Jones and software manufacturer MicroStrategy . However, they only form the vanguard for a whole flood of funds that will soon be flushed into the market-leading cryptocurrency by large investors.
At least that’s what Tyler and Cameron Winklevoss, the founders and operators of the Gemini crypto exchange, think
“These are the smartest investors, the smartest of the smart ones are quietly buying Bitcoin, so there is no close-of-the-gate panic (FOMO) behind this,” Tyler said in an interview with CNBC. He sees the institutional investors as the driving force behind the current soaring of Bitcoin Code, and not the small private investors as with the big crypto hype of 2017.
In addition to Tudor Jones and MicroStrategy, Stanley Druckermiller, MassMutual, Guggenheim Partners and the Twitter boss-operated payment service provider Square also invested in Bitcoin this year , although this decision is largely due to the uncertain economic situation and the loose monetary policy of the central banks.
Bitcoin is often interpreted as a store of value and a “safe haven”, a narrative that Tudor Jones and Druckermiller also agree with.
Tyler Winklevoss adds in the interview:
“In addition, listed companies such as Square and MicroStrategy are now investing their company assets in Bitcoin because they are afraid of the impending inflation that hangs over us like the sword of Damocles due to the continuous printing of money and the Corona aid packages.”
When asked whether Bitcoin is suitable as a means of transaction due to the high volatility of the cryptocurrency, the Winklevoss twins counter that Bitcoin is much more a financial product that should be “bought and held” because, as Tyler explains, they see “Bitcoin as an emerging store of value that can compete with gold and bitcoin’s market cap up to 9 trillion. US dollar drives “. The cryptocurrency does not have to be usable as a transaction medium, which in turn would mean that the volatility is also not disadvantageous. In addition, the volatility would decrease over time anyway.
At press time, Bitcoin’s market cap is $ 335 billion, far from the forecast $ 9 trillion. US dollar is away, even though the previous record high of 2017 was broken this year .