Bitcoin, the game-changing cryptocurrency’s price is soaring and more gains could lie ahead. But for whom? Who shall gain more from this unexpected skyrocketing value of Bitcoin? As of now, the reports says that the smartest investors out their shall reap more profit! But how? Let’s find out.
Right from its inception Bitcoin carried along with it a taboo tag. During then buying Bitcoin was in fact considered as a fraud and a scam. But now its a glorious season for Bitcoin. Of late, the cryptocurrency caught a media attention for breaking the historical records overnight. For the first time in the history of Bitcoin price had skyrocketed above $30,000, creating a momentous shake in the entire industry of digital currency. Now this surge has come up with golden promises for the smartest investors out there.
According to some reports, the famed macroeconomic investor Paul Tudor Jones purchased bitcoin in May as a means to protect his portfolio from the negative effects of inflation. Jones expects the massive stimulus measures enacted to mitigate the carnage wrought by COVID-19 to eventually cause a steep rise in the prices of goods and services. “We are witnessing the Great Monetary Inflation – an unprecedented expansion of every form of money unlike anything the developed world has ever seen,” Jones said.
Bitcoin garnered global acceptance in a flash!
Following this, Jones evaluated multiple types of potential investments, including gold, commodities, and stocks. Yet Jones believes bitcoin is the best option. He sees the cryptocurrency increasingly becoming a store of value, due in part to its advantages over gold. Bitcoin is easier to store and transfer than the precious metal. It’s also more divisible, says the investor. Also, he says that the coming age shall run primarily with digital currency and hence Bitcoin shall find a place in post COVID era.
In November, billionaire hedge fund manager Stanley Druckenmiller announced that he, too, owned bitcoin. Like Jones, Druckenmiller views bitcoin as a means to profit as the dollar declines in value. For him, Bitcoin can be used as a store of value, particularly for the millennial investors.
Michael J. Saylor is an American entrepreneur and business executive, who co-founded and leads MicroStrategy, recently succoured Bitcoin. “Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” Saylor said in a press release. “This investment reflects our belief that bitcoin, as the world’s most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
In December, insurance giant MassMutual joined the movement when it invested $100 million in bitcoin. Although the purchase represented a relatively small portion of its massive $235 billion portfolio, the insurer signaled that more cryptocurrency purchases could lie ahead. “We see this initial investment as a first step, and like any investment, may explore future opportunities,” MassMutual spokeswoman Chelsea Haraty told Bloomberg.
More companies are likely to follow MicroStrategy’s lead in the weeks and months ahead. Perhaps Tesla (NASDAQ: TSLA) will be one of them. Also, following these investment giants, more businesses and investors are likely to buy bitcoin in the coming year, which could help to drive the cryptocurrency’s price sharply higher.