Bitcoin’s ongoing price rally is nearing its all-time high, making it the center of attention just like 2017 where most of the mainstream media houses have started to take note of the king coin’s price movement. While the price movement and attention might be quite similar to 2017, a lot has changed about the top cryptocurrency from its last bull run.
Michael Sonnenshein, managing director of Grayscale Investments, the largest crypto fund manager at present in an interview said that the demand for bitcoin is top the roof, and clients no more see it as a ‘get rich quick scheme.’ The largest crypto fund manager boats over $10 billion worth of bitcoin under its management. Sonnenshein said that his clients don’t see Bitcoin as a speculative asset rather they see it as a store-of-value and inflation hedge. He explained,
“I think they understand today that buying Bitcoin and putting it in their portfolio is meant to be a store of value, inflation hedge, a digital gold, a digital form of money that is much better suited to the digital world we live in today versus historical stores of value like gold which would have been certainly much more applicable to a world characterized by physical exchanges. They view it as one of the most important next steps in the evolution of money and what constitutes a store of value.”
‘You can’t buy coffee using Bitcoin’, No More a Valid Argument
Sonnenshein also criticized the naysayers and said that “you can’t buy coffee with bitcoin” is no more a valid argument as Bitcoin is more than just a form of currency today. He said the scarcity of digital assets combined with the ongoing financial situation brought upon us by the raging pandemic has pushed institutional players towards bitcoin.
The 2017 bitcoin bull run was driven by speculations while the 2020 bitcoin rally is predominantly led by adoption and acceptance. Over the past week 3 bitcoin funds have added 24,337 bitcoins to their portfolio, PayPal started offering Bitcoin through its platform, the world’s largest investment firm BlackRock’s CIO said bitcoin has the potential to replace gold in the future and many institutional investors revealed that they hold a certain portion of their investment portfolio in Bitcoin.
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An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.