Digital Assets: Tyler Winklevoss Predicts Investment “Tsunami” In Bitcoin
Citing recent corporate investments in BTC, Winklevoss thinks there will be lots more.
Tyler Winklevoss, the famous billionaire and co-founder of Gemini, said in a tweet that there will a tsunami of capital flows into the bitcoin cryptocurrency. He was referring to the recent multi-million dollar investments in bitcoin by MicroStrategy (NASDAQ: MSTR) and Square (NYSE: SQ). (NewsBTC)
A tsunami of capital
Between August and September, Nasdaq-listed firm MicroStrategy revealed it had made an investment of $425 million in the cryptocurrency out of its corporate cash reserves.
“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,” said Michael J. Saylor, CEO, Microstrategy at the time.
Last week, Jack Dorsey’s Square also made a sizable investment of $ 50 million. The amount was equivalent to 1% of its total assets.
“Given the rapid evolution of cryptocurrency and unprecedented uncertainty from a macroeconomic and currency regime perspective, we believe now is the right time for us to expand our largely USD-denominated balance sheet and make a meaningful investment in bitcoin,” the firm said in a whitepaper.
Macroeconomic factors positive for bitcoin
There is a growing groundswell of opinion that the crypto is a good investment on account of fears of high inflation and an erosion in the value of the US dollar, current low yields on bonds, and signs of acceptance by Wall Street.
Investors are also uncomfortable with the current high valuations of stocks and are looking for a diversification alternative that does not have much correlation with the stock market.
According to Bitcoin.com, which cited statistics from bitcointreasuries.org, some of the major public companies that have invested in bitcoin include:
- Grayscale Bitcoin Trust
- MicroStrategy Inc
- Square Inc
- Hut 8 Mining
- Argo Blockchain
- Riot Blockchain
- Galaxy Digital Holdings
- Voyager Digital Ltd
- Cypherpunk Holdings
Related Story: Jack Dorsey’s Square Buys $50M of Bitcoin
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