Renowned financial players continue to buy Bitcoin.
Over the course of 2020, more than a handful of traditional finance giants have purchased stacks of Bitcoin (BTC), including billionaire Paul Tudor Jones and the business intelligence company MicroStrategy. These investments are part of a large influx of money into BTC, said the co-founders of the Gemini crypto currency exchange, Tyler and Cameron Winklevoss, recently.
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„These are the most sophisticated investors, the smartest people in the room, buying Bitcoin quietly, so it’s not a FOMO thing,“ Tyler said in a CNBC interview released Friday. The major institutions are here for this round, unlike Bitcoin’s retail-led 2017 bull run, Tyler explained.
Over the course of this year, in addition to Tudor Jones and Microstrategy, Stanley Druckenmiller, Jack Dorsey Square, MassMutual and Guggenheim Partners have gained exposure to Bitcoin. Their investments in Kryptonie align with an unstable global economic atmosphere plagued by money printing efforts.
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Bitcoin is often compared to gold as a store of value and a refuge from inflation. Druckenmiller and Tudor Jones align themselves with such a narrative.
Tyler Winklevoss added:
„In addition, you have publicly traded companies like Square and MicroStrategy that invest their treasury cash in Bitcoin because they are concerned about the coming inflation and the scourge of inflation with all the printing of money and the encouragement of the COVID.
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When asked about Bitcoin’s volatility as a trading asset, the brothers called Bitcoin a „buy and hold“ strategy compared to gold. „We see Bitcoin right now as an emerging reserve of value that will alter the gold, and that leads to a market cap of $9 billion for Bitcoin,“ said Tyler. „So it doesn’t really have to be used as a currency, and volatility doesn’t matter if it’s really a value reserve,“ he added. The billionaire also expects some level of declining volatility for the asset over time.
The Fed’s call for more stimulus is „key to buying Bitcoin,“ says Winklevoss.
At the time of this article’s publication, Bitcoin’s market capitalization is around $335 billion, a long way from $9 trillion, although the asset recently surpassed its historic high, set in 2017.