The most valuable and widely used crypto-asset, Bitcoin, is now the most preferred asset to own among institutional investors.
Gemini crypto exchange co-founder, Cameron Winklevoss, on his Twitter feed, wrote about the sudden rush by institutions trying to have a piece of BTC.
This is HUGE. #Bitcoin is going mainstream. Companies are starting to understand the importance of holding a fixed asset in their treasury. There will never be more than 21 million bitcoin. There's no bitcoin printer. Full stop. https://t.co/9hyYJPtO7E
— Cameron Winklevoss (@winklevoss) August 11, 2020
Publicly traded company based in America, MicroStrategy, recently adopted Bitcoin as a treasury reserve asset to hedge against fiat inflation. This is a big deal and it’s good to see BTC’s being used as intended – a hard money/savings instrument.
— Michael Saylor (@michael_saylor) August 11, 2020
“Our investment in Bitcoin is part of our new capital allocation strategy, which seeks to maximize long-term value for our shareholders,” said Michael J. Saylor, CEO, MicroStrategy Incorporated.
“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,” he added.
There’s never been a better time to buy Bitcoins than now that the government is involved in stimulus packages that are intended to pump money into the system.
In an explanatory note to Nairametrics, Ekene Ojieh, Head of Public Relations and Corporate Strategy at Buffalo Chase, a crypto-asset custodian management firm, gave vital insights on why BTC seems to be the next safe-haven asset. She said:
“In the past few weeks, gold saw a new all-time high of $2034 which is about 42.6% in the last decade.
“Bitcoin has gained about 8.9 million percentages over the last decade. Security and scarcity are the topmost reasons why traders have trust in safe-haven assets like gold and bitcoin.
“Bitcoin would outperform gold in a foreseeable future because it’s easily accessible for anyone with internet and of course a more profitable asset than gold.”
She spoke about the initial skepticism that traditional banks, and global financial regulators had on bitcoin, which looks to be changing now, saying:
“The last decade has been quite challenging for bitcoin and the crypto space despite the enormous price increase. Regulators, investors, and mainstream traders were skeptical about bitcoin because of its volatility and how bitcoin works.
“In recent times, we have seen growth in the adoption of bitcoin and other cryptocurrencies in general; regulators, banks, are finding an entry point into the crypto space.
“In addition, the market cap of both gold and bitcoin, 9 trillion dollars, and 117.81 billion dollars respectively, shows that bitcoin still has a lot of potentials. Going by this trajectory, bitcoin is expected to gain more grounds, increase in value, and also be widely used/accepted.”
Quick fact: In recent times, some emerged markets have beefed up their monetary activities, attempting to prop up a fragile economy disrupted by the raging COVID-19 pandemic.
BTC’s primary advantage
BTC holds a maximum supply of about 21 million digital coins of which there are about 18.5 million in circulation, while over 4 million BTCs have already been lost forever. These show that its definite supply protects the asset against value dilution.
The many global economic problems around the world including inflation and the recent plunge in value for most fiat currencies have made cash an unreliable store of value, pushing some to store their value in a deflationary currency like Bitcoin which can protect.
Crypto market surges above $2 trillion, as Bitcoin stages a huge comeback above $60,500
The global crypto market value at press time stood at $2.05 trillion, a 3.85% increase over the last day.
The flagship crypto is recording a significant buying spree as Bitcoin bounced above the $60,500 price level once again.
The global crypto market value at press time stood at $2.05 trillion, a 3.85% increase over the last day, with Bitcoin having a market value of $1.123 trillion and a circulating supply of 18,678,481 BTCs
Bitcoin’s price is currently $60,638.55.
Bitcoin’s dominance is currently 55.36%, an increase of 0.21% over the day.
Investors are moving their funds to Bitcoin after an avalanche of COVID-19 stimulus shocked the crypto market since last year amid fears of rising fiat inflated currencies coupled with leading business brands adding more buying pressures on Bitcoin with BNY Mellon, America’s oldest bank giving its approval on the new digital gold as it makes a debut into mainstream investment assets.
Consequently, MicroStrategy now has 91,579 BTCs worth about $5.54 billion while Tesla holds 32,608 BTCs, hinting that more global business brands may take such route to hold the most popular crypto as a treasury tool amid concerns that just 21 million BTCs will ever exist with about 4 million BTCs already lost forever.
Recent price action suggests that bitcoin bulls are holding on tight as they built strong support around the $58K area.
— Yann & Jan (@Negentropic_) April 8, 2021
That being said, crypto pundits argue that bitcoin still faces strong headwinds in the coming months amid growing regulatory concerns. There is also the bias that its high volatility is making it challenging for some traditional investors to come on board and its massive electrical consumption via the blockchain has also put it at odds with many environmentalists.
Meet the billionaire twins who bought $10m worth of Bitcoin when it still sold for $8
The Winklevoss twins’ early investment in Bitcoin has propelled them into the billionaire league.
The digital asset economy has made many people rich. The current worth of Bitcoin, a digital asset that was trading a little above $100 in October 2013, is now near $60,000!
While many people were smart enough to invest in Bitcoin early, not many had the guts to go all out for it. Today, we are going to look at the identical twins who were crazy enough to invest heavily in cryptocurrency. The twins started investing in Bitcoin as early as 2012.
They are currently listed on the Forbes Billionaire List amongst the newcomers who reached a billion-dollar status due to their Bitcoin investing.
Meet the Winklevoss twins (worth $3 billion each)
Cameron and Tyler Winklevoss are currently worth $3bn each. They started investing in Bitcoin as early as 2012 when the cryptocurrency still sold for $8 and splurged a whopping $10m to purchase the crypto asset, making them one of the biggest and earliest investors in cryptocurrency.
Their gamble paid off and today, they are worth a collective $6bn.
More investments in crypto
The Winklevoss twins are not slowing down, they are instead, making further investments in cryptocurrency. Recently, they invested in a Bitcoin lending start-up named Block-Fi which is now valued at $3bn.
Battle with Mark Zuckerberg
The Winklevoss twins are no strangers in Silicon Valley. They were Mark Zuckerberg’s classmates at Harvard and they once accused the tech billionaire of stealing their idea for Facebook.
A bitter legal battle between the two ended in the twins receiving significant cash and Facebook stock compensation from Zuckerberg. Some of their cash compensation was invested in cryptocurrency and it has indeed, paid off.
What you should know
In their early days, cryptocurrencies witnessed an unstable growth path, rising and falling occasionally. This discouraged many people from investing heavily in it. The Winklevoss twins took the risk on Bitcoin and are now billionaires on Forbes list. Currently, they run their company, Gemini, a regulated cryptocurrency exchange, wallet and custodian that makes it simple and secure to buy Bitcoin, Ethereum and other cryptocurrencies.
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