Two day old crypto, YAM’s market value drops from $60 million to $0 in 35mins
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
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.
“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:
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.