Cryptocurrencies and especially Bitcoin, are gaining substantial popularity in the mainstream economy wherein high-value individuals and leading organizations are investing in Bitcoin.
As reported by Bloomberg, many wealthy individuals and organizations are buying Bitcoin more actively than ever as the leading cryptocurrency gains popularity as a portfolio asset.
Bitcoin gains popularity as a portfolio asset
Several financial advisors and investors said that Bitcoin is a central topic of conversation in the crypto circles. Most recently, a lot of influential players in the financial circuits have voiced their support for Bitcoin.
Jack Dorsey, the co-founder and CEO of Twitter, and Square has openly promoted Bitcoin, calling it the best internet currency.
Another prominent promoter of Bitcoin in Barry Silber,the founder and CEO of the Digital Currency Group. He is one of the largest owners of Bitcoin, and through his company aims to support the development of the digital financial systems by supporting bitcoin.
With a lot of institutional investment pouring in for Bitcoin, it is evident that the major corporates are recognizing its potential as a safe portfolio asset. Bitcoin provides safety against rising inflation. And as the digital currency is still in its nascent phase, there is a high probability of it emerging as an inflation hedge.
Grayscale most recently augmented its Bitcoin reserves by buying a massive 15,000 Bitcoin making its total accumulation of Bitcoin to 506,000 BTC worth 8.1 Billion. PayPal announced support for Bitcoin in October 2020, allowing its millions of users to buy, hold and trade Bitcoin through its platform. Moreover, the company announced rolling out the facility of using BTC as funds reserve for making purchases across its 28 million merchants.
Bitcoin supply is limited; thus, the investors are protected from the massive central bank liquidity initiatives.
As Bitcoin maintains its bullish run, it is projected to touch the $20,000 by the end of 2020. Moreover, the Bitcoin supply shrunk after bitcoin Halving in May 2020 and goes on shrinking due to the block reward halving; the price would further increase as the demand increases.
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